Minggu, 03 April 2016

Fears Over Sluggish Growth In Manufacturing


British manufacturing has grown slightly from a three-year low but exports and jobs continued to show a decline, figures show.

The closely-watched Markit/CIPS manufacturing Purchasing Managers' Index (PMI) edged up to 51.0 in March, following February's 50.8 reading, completing one of its weakest quarters in the past three years.

A measure above 50 marks industry growth, while a number below 50 shows contraction.

The survey said the main source of new business was in the domestic market while exports shrank for the third consecutive month, hampered by a tough global environment.

Employment showed a worsening decline. While smaller businesses were hiring, this was offset by cuts at larger manufacturers.

It was the latest mediocre update from a sector which is still lagging below its pre-recession levels and comes as industry faces fresh uncertainty after Tata Steel said it planned a sale of its entire UK operation. 

Rob Dobson, senior economist at Markit, said: "Although March saw modest improvements in the trends for production and new orders, industry is still hovering close to the stagnation mark and will struggle to make a meaningful contribution to the next set of GDP growth figures".

Howard Archer, chief UK and European economist at IHS Global Insight, said: "About the best that can be said for this survey is that it is a tiny step in the right direction for manufacturers."

Ruth Miller, UK economist at Capital Economics, said the "dismal" figures "suggest that the sector is still struggling to put its troubles last year behind it".

There are expectations that manufacturing prospects will improve during the year, however, with global growth expected to pick up slightly but there are still uncertainties due to the upcoming EU referendum and its effect on the exchange rate, she added.

Separate manufacturing PMI figures for the eurozone showed a reading of 51.6 - up from February's 51.2.

The bloc's economy grew by just 1.6% in 2015 and first-quarter surveys suggest there is unlikely to be much short-term improvement.

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