View more on these topics

UK manufacturing hits 14-month high

Manufacturing-Pharmaceutical-Plant-Factory-700x450.jpg

The UK manufacturing sector saw activity rise to a 14-month high in May after benefitting from a strong improvement in the domestic market.

Markit and the Chartered Institute of Purchasing & Supply’s UK manufacturing purchasing managers’ index came in at 51.3 points in May, up from 50.2 in the previous month and remaining above the 50-point mark that indicates an expansion in activity.

The domestic market was the main driver of new order inflows for the UK’s factories, although export business also showed a “modest” increase. Manufacturing operating conditions improved at their fastest pace in over a year, the survey shows.

Markit senior economist Rob Dodson says: “The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led to faster growth of output and new orders. One of the more positive features of the expansion is its broad-base, with producers of consumer, intermediate and investment goods all reporting stronger output growth.

“Following the solid growth registered by the service sector in the first quarter GDP numbers, signs that the manufacturing sector is also recovering will add further weight to the Bank of England’s decision to wait-and-see before adding to its accommodative policy stance.”

Recommended

5

Steve Webb: DB will be ‘dead’ without defined ambition

Pensions minister Steve Webb has warned defined benefit schemes will be “dead” unless the Government drives through reforms to reduce the risk borne by employers. The Government is currently assessing how it can ease the financial and regulatory burden placed on firms who want to offer DB pensions as part of its “defined ambition” reform […]

Advisers welcome FCA consultation into ‘novel securities’ promotion ban

Financial advisers have welcomed the Financial Conduct Authority’s planned consultation into a ban on promoting ‘novel securities’ like contingent convertibles to retail investors. After confirming a ban on the retail marketing of unregulated collective investment schemes, the FCA says it is “monitoring the market” in non-pooled investments like CoCos, building societies deferred shares and other novel securities out […]

MPs criticise ‘timid’ regulation of payday lenders

MPs have criticised the Office of Fair Trading’s “timid” approach to the regulation of payday lenders. In an investigation of the UK’s consumer credit market, the public accounts committee says the regulator has never fined any of the 72,000 firms with consumer credit licences, which includes payday lenders, suggesting a “timid rather than tough [approach] […]

UK gilts: Shaken and stirred

Mike Riddell, fixed income portfolio manager at Allianz Global Investors, reviews the performance of the UK government bonds market post-Brexit and assesses its future prospects, as well as giving his outlook for global fixed income markets and yields movements. In addition, he provides a brief analysis of the impact of Brexit and the Bank of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment