Saturday, July 02, 2011

UK manufacturing growth 'stalling'

UK manufacturing sector growth fell to its lowest rate for 21 months in June as new orders declined, a survey says.

The Markit/Cips manufacturing purchasing managers' index (PMI) for June fell to 51.3, down from May's downwardly revised measure of 52.0. A figure above 50 indicates expansion.

Markit said that growth was "stalling", with weak domestic demand and the recent boost to exports now fading.

However, there were signs that inflationary pressures had eased.

"The manufacturing sector continued to slip closer to stagnation in June," said Rob Dobson, senior economist at Markit.

"The data will call into question the sector's ability to play a major role in delivering a robust and sustainable economic recovery."


More at BBC News

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