UK manufacturing rises as export orders expand

13:32, June 02, 2010      

Email | Print | Subscribe | Comments | Forum 

British manufacturing activity held steady in May at the previous month's 15-year high, a survey showed yesterday, but the recovery outlook was clouded by signs of accelerating price pressures.

The Markit/Chartered Institute of Purchasing and Supply manufacturing PMI was unchanged at 58.0 in May, slightly above the 57.8 consensus forecast. It has been above the 50-mark, which indicates growth, since July 2009.

Manufacturing output increased for the 12th consecutive month, although the growth rate eased slightly for a second month.

Britain's coalition government, formed after an inconclusive election on May 6, may take some comfort from the figures as it tries to secure the recovery from an 18-month recession that ended in late 2009.

Prime Minister David Cameron has said he wants to rebalance the British economy, with a greater emphasis on manufacturing and the private sector. His government will set out spending plans on June 22 in an emergency budget expected to explain how it will try to cut the budget deficit.

The survey showed a further robust increase in new orders, with the rate of expansion remaining close to April's six-year high. Export orders rose for a ninth consecutive month as firms continued to benefit from a competitive exchange rate.

"UK manufacturing maintained its blistering start to the second quarter," said Rob Dobson, senior economist at Markit. "Although production remains well below pre-recession levels, the sector is now recovering its losses at a surprisingly rapid pace."

The monthly survey of 600 industrial companies showed average purchase prices in May rose at the fastest rate since August 2008, extending a nine-month run of gains. Factory gate price inflation, meanwhile, rose at the fastest rate since September 2008.

The Bank of England maintains that the recent spike in inflation will prove temporary, but some members of the monetary policy committee are growing nervous this assessment may be too optimistic.

Consumer price inflation jumped to a 17-month high of 3.7 percent in April, almost double the bank's target.

The survey showed the rate of jobs growth eased from April, although it was still close to that month's three-year high. Improved demand from China, Europe, the United States, Africa and the Middle East boosted new export orders. However, their rate of growth was also slightly down from April.

While strong export growth and robust domestic demand have helped British manufacturers this year, the outlook is far from certain, Markit's Dobson said. "Austerity measures may cool home demand, while export sales may be hit by the sovereign debt crisis."

Source:Xinhua

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • Forces of the Libyan National Transitional Council (NTC) shoot shells to the fighters loyal to Muammar Gaddafi outside Bani Walid, Libya, Sept. 27, 2011. Bani Walid is still occupied by fighters loyal to Muammar Gaddafi. (Xinhua/Hamza Turkia)
Hot Forum Discussion