Good news for UK manufacturing as PMI rises again

PMI has remained above the neutral 50.0 mark – signalling expansion – since April, with its level improving in each of the past five months. The latest figures show that manufacturing production increased for the fourth month running in July, as growth of new orders continued to strengthen. Companies reported improved domestic and export demand. Manufacturing employment also rose for the third successive month in July, with the rate of job growth reaching a two-year high. EEF chief economist Lee Hopley, pictured, enthused: "The good news continues to roll in for UK manufacturing. There are now more reasons to be confident that manufacturing will make a more positive contribution to growth through the rest of the year." Rob Dobson, senior economist at survey compiler Markit, said the data provided positive news, building on the foundation of the second quarter's 0.4% return to growth reported by the latest official data. "The breadth of the upturn in manufacturing should aid in its sustainability," he commented.