Threat of UK public spending cuts slows manufacturing growth
03 Sep 2010
Source: Supply Management
UK manufacturing is growing at its slowest rate in nine months, according to the latest Purchasing Managers’ Index (PMI).
Although the sector continued to expand last month, the Markit/CIPS survey of purchasing managers in the sector registered 54.3 in August, down from 56.9 in July. A score of 50 indicates no change. David Noble, chief executive at the Chartered Institute of Purchasing and Supply, said the PMI result suggested that the prospect of severe public spending cuts was hanging over the manufacturing sector. ?
“While the volume of work continues to expand, businesses are taking a more cautious approach to new orders, with growth of order books slowing sharply in August,” he said. “The government spending review in October should bring more clarity to the situation.” Rob Dobson, senior economist at Markit said that although growth was slowing, there was little suggestion the manufacturing sector would slip back into recession. “Most indicators are still consistent with growth continuing and further job creation was recorded, “ he said, “ Although the intermediate and consumer sectors are cooling, the capital goods sector accelerated, which suggests that investment spending is still supporting growth."??
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