Manufacturing sector ‘rebounds’ after Brexit

By Matt Atherton contact

- Last updated on GMT

Manufacturing sector rebounds after Brexit
Manufacturing sector rebounds after Brexit
The manufacturing sector achieved record 25-year growth last month, after the steep downturn following the EU referendum, according to the Markit/ Chartered Institute of Procurement & Supply purchasing managers’ index (PMI).

The growth index recorded 53.3 points in August, compared with 48.3 in the previous month. It was reportedly the joint largest month-on-month increase in PMI level in the survey’s 25-year history.

According to the organisation, any figure above 50 indicates growth. The survey results helped the pound rise 1% in value against the dollar, and 0.6% against the euro.

‘Solid rebound’

Markit senior economist Rob Dobson said: “The August PMI data indicate a solid rebound in the performance of the UK manufacturing sector from the steep downturn that followed the EU referendum.”

Dobson said: “Rates of increase in input prices and output charges both hit five-year highs, which manufacturers placed squarely at the door of the cost impact of sterling on import prices.”

Last month, an Office for National Statistics report​ said production costs had increased by 4.1% over the past 12 months. The Brexit vote caused nationwide-inflation to rise quicker, reaching a 20-month high.

Manufacturing sector boost

  • August PMI rises to 53.3
  • July PMI was 48.3
  • Above 50 indicates sector expansion
  • Joint largest month-on-month PMI increase in survey’s history

Related topics: Business News, Brexit Debate

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