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Manufacturing pain is easing
May 05, 2009
The pain in the manufacturing sector has showed signs of easing after a key measure of activity rose to an eight month high.
The Chartered Institute of Purchasing & Supply (CIPS) posted an activity reading of 42.9 in April, still below the neutral mark of 50 but better than the 39.5 seen in March. It was also ahead of City expectations of around 40.
Ross Walker, an economist at Royal Bank of Scotland, said the weaker pound and more competitive pricing appeared to be helping the sector.
He added: “British industry continues to contract, and will face considerable headwinds for some time, but there are at least clearer signs the break-neck pace of contraction over the past six months is alleviating.”
The CIPS survey reached a low point in February, but has recovered since then, helped by an easing in rates of contraction for output and new orders.
