‘The sector should have sufficient momentum to see it through the uncertainty generated by the current unexpected general election and into the start of Brexit negotiations later in the quarter.’ – Rob Dobson, IHS Markit
Manufacturing activity in the United Kingdom fell less than expected last month, a private survey revealed on Thursday. Markit reported that its PMI for the British manufacturing sector came in at 56.7 points in May, the strongest since June 2014, down from the preceding month’s 57.3. However, market analysts anticipated a bigger drop to 56.5 during the reported month. Furthermore, Markit noted that new order growth remained strong, whereas the pace of job creations hit its 35-month high in May. The Markit Senior Economist Rob Dobson said that the strong PMI data suggested that the British economy gained positive momentum in the second quarter. Strong manufacturing activity is set to provide a boost to the UK Prime Minister Theresa May’s ruling Conservative Party ahead of the 2017 General Election, which is scheduled to take place on June 8. Markit also noted that domestic demand remained the key driver of growth in the manufacturing sector. Apart from that, the report showed that manufacturers’ optimism over the economy hit a 20-month high last month.
