U.K. Manu Sector Held Up by Consumer Goods
Published By : 04 Aug 2015 | Published By : QYRESEARCH
The manufacturing sector in Britain has been reportedly growing more dependent on the consumer goods segment to show most of its growth. The new export orders have been falling for four months in a row till July.
The monthly purchasing survey by Markit/CIPS has indicated only a slight activity in expansion as it climbed up to 51.9 in July from the June’s index of 51.4. The index currently lies just above 50, signifying slight growth. While the rise in index could be seen as positive, experts believe that it merely compensated for the fall in June, thereby bringing it to a neutral stand.
The index has been close to the lowest it has been since the first half of 2013.
Markit’s senior economist Rob Dobson stated that the manufacturing sector’s growth has become nearly stagnant. This has created a severe drag on the average growth rate and economy of the region. He also said that rebalancing currently has become a rhetoric in comparison to the reality column.
The sector of consumer goods continues to show strong rates of growth. On the other hand, the Markit survey also recorded a contraction in investment goods sector and a lackluster performance in the sector of semi-finished goods.
Overall selling prices have grown for a second instance in the past three months.
BNP Paribas economist Dominic Bryant said the pricing upswing could possibly add to the confidence of the Bank of England to make the inflation rebound during the second half of the year. He also said that it will remove another factor that has led the Band of England to keep policies loose till today.