According to data, in the month of August 2016, the manufacturing sector in the U.K. performed better than it was expected. The index of UK’s “manufacturing purchasing managers” attained to the highest position on the ten months time at “53.3”, whereby the said sector recovered from the forty one months’ low position of “48.3” which appeared in the month of July as a post Brexit effect.
The economists, however, expected the same index to climb up to “49.0”. The increment in the manufacturing unit was observed to be the fastest within seven months, whereby recovering from the “contraction” that was “registered” in the previous month of July. Surveys found that three “market groups” had climbed the ladder of growth, while the “strongest expansion” being in the “consumer goods sector”. One of the “survey compilers” and a senior economist at Markit, Rob Dobson, stated:
“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.
“Companies reported that work that had been postponed during July had now been restarted, as manufacturers and their clients started to regain a sense of returning to business as usual. The domestic market showed a marked recovery, especially for consumer products, while the recent depreciation of sterling drove higher inflows of new business from the USA, Europe, Scandinavia, Middle East and Asia.”
While, the Pantheon Macroeconomics’ Chief Economist in UK, Samuel Tombs, said:
“The Markit/CIPS manufacturing suggests that the industrial sector is recovering swiftly from its soft patch immediately after the referendum, but we would caution against concluding that the dominant services sector also has experienced a sudden transformation.”
References:
http://www.digitallook.com/
The economists, however, expected the same index to climb up to “49.0”. The increment in the manufacturing unit was observed to be the fastest within seven months, whereby recovering from the “contraction” that was “registered” in the previous month of July. Surveys found that three “market groups” had climbed the ladder of growth, while the “strongest expansion” being in the “consumer goods sector”. One of the “survey compilers” and a senior economist at Markit, Rob Dobson, stated:
“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.
“Companies reported that work that had been postponed during July had now been restarted, as manufacturers and their clients started to regain a sense of returning to business as usual. The domestic market showed a marked recovery, especially for consumer products, while the recent depreciation of sterling drove higher inflows of new business from the USA, Europe, Scandinavia, Middle East and Asia.”
While, the Pantheon Macroeconomics’ Chief Economist in UK, Samuel Tombs, said:
“The Markit/CIPS manufacturing suggests that the industrial sector is recovering swiftly from its soft patch immediately after the referendum, but we would caution against concluding that the dominant services sector also has experienced a sudden transformation.”
References:
http://www.digitallook.com/