Manufacturing sector ‘rebounds’ after Brexit
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
