3-year growth high for UK manufacturing eases Brexit fears

The UK manufacturing industry has helped calm early worries over Brexit by recording the fastest growth figures in three years, according to the Markit/CIPS UK Manufacturing PMI report*. With strong demand both natively and from clients overseas in North America, Europe, Africa and Brazil, many UK factories have accelerated production and employed extra personnel in the wake of the most significant rise in new business since the beginning of 2014.

APRIL FORECASTS EMPHATICALLY BEATEN

The results obliterated April’s PMI index forecasts of 54.0, recording a 57.3 that signifies a weighty increase on March’s four-month low of 54.2. Output rates, total new orders and new export work all saw increases that backed up robust business confidence and job creation. Additionally, while currency deprecation is impacting margins, price inflations on costs and materials are influencing a more competitive price on British exports.

UNCERTAINTY REMAINS IN THE WAKE OF GROWTH

Despite representing just 10% of the UK economy, a manufacturing upturn is welcome news, particularly following the sluggish first quarter GDP growth earlier this year.

The concern will now be whether this improvement can be maintained with ongoing market volatility and further political gales approaching. For many, the uncertainty over Britain’s future is set to remain, despite April’s excellent results.