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Manufacturing Officially Bounces Back After BREXIT
Manufacturing Officially Bounces Back After BREXIT

Manufacturing Officially Bounces Back After BREXIT

Added to MTDCNC by MTDCNC on 02 September 2016

The new Purchasing Managers Index (PMI) figures for August have just been released and it appears that the doom mongering over BREXIT is now firmly in the rear view mirrors. The figures for August saw solid rebounds in the trends in UK manufacturing output and incoming new orders

Businesses reported solid inflows of new work from both domestic and export sources. Employment rose for the first time in the year-to-date. At 53.3 in August, the seasonally adjusted Markit/CIPS Purchasing Managers’ Index® (PMI®) recovered sharply from the 41-month low of 48.3 posted in July following the EU referendum. 

The month-on-month increase in the level of the headline PMI (5.0 points) was the joint-greatest in the near 25-year survey history. The gains in the indices tracking output and new orders were similarly among the steepest on record. Manufacturing production increased at the fastest pace in seven months during August, an improvement on the contraction registered in the prior month. 
All three of the market groups covered by the survey returned to growth, with the strongest expansion registered in the consumer goods sector. These figures fly in the face of predictions from leading politicians and market analysts that predicted 'the end is nigh' for UK PLC in the aftermath of BREXIT. 

New business rose at one of the quickest rates in the year to date, as companies benefited from improved inflows of new work from both domestic and overseas clients. There were also reports of stronger demand, product launches and clients committing to new and previously postponed contracts.

Improved sales volumes to markets such as the USA, Europe, China, South-East Asia, the Middle- East and Norway led to a further increase in new export business during August. Moreover, the rate of growth accelerated to a 26-month high. The depreciation of the sterling currency was by far the main factor manufacturers cited as supporting the upswing in new export work. 

At MTD, we've noticed a slight lull in market activity, but this has come as a result of the post-BREXIT hangover carrying over to the inherently quiet summer period. Despite the supply chain having a relatively slow period from a sales perspective, MTD has been reporting all summer how OEM's have been announcing significant projects, which all started with Farnborough back in July. As these multi-million pound (multi billion in many cases) projects commence, there is little doubt that our market place will prosper. 

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