Fears Over Sluggish Growth In Manufacturing

62
Source:   —  April 01, 2016, at 4:50 PM

UK industry still hovers near to stagnation and will struggle to create a notable contribution to economic growth, declare experts.

Fears Over Sluggish Growth In Manufacturing

British manufacturing has grown slightly from a three-year low but exports and jobs continued to indicate a decline, figures show.

The closely-watched Markit/CIPS manufacturing Purchasing Managers' Index (PMI) edged up to 51.0 in March, following February's fifty.8 reading, completing one of its weakest quarters in the past three years.

A measure above fifty marks industry growth, while a no below 50 shows contraction.

The survey said the main source of new business was in the domestic market while exports shrank for the third consecutive month, hampered by a tough global environment.

Employment showed a worsening decline. While smaller businesses were hiring, this was offset by cuts at larger manufacturers.

It was the latest mediocre upgrade from a sector which is still lagging below its pre-recession levels and comes as industry faces fresh uncertainty after said it planned a sale of its all UK operation. 

Rob Dobson, senior economist at Markit, said: "Although March saw modest improvements in the trends for production and new orders, industry is still hovering near to the stagnation label and will struggle to create a meaningful contribution to the following set of GDP growth figures".

Howard Archer, chief UK and European economist at IHS Global Insight, said: "About the best that can be said for this survey is that it's a tiny step in the right direction for manufacturers."

Ruth Miller, UK economist at Capital Economics, said the "dismal" figures "propose that the sector is still struggling to keep its troubles latest year behind it".

There are expectations that manufacturing prospects will make better during the year, however, with global growth expected to choose up slightly but there are still uncertainties due to the upcoming EU referendum and its effect on the exchange rate, she added.

Separate manufacturing PMI figures for the eurozone showed a reading of 51.6 - up from February's 51.2.

The bloc'south economy grew by just 1.6 percent in two thousand-fifteenth and first-quarter surveys propose there is unlikely to be much short-term improvement.

READ ALSO
Cote's Ex-Owner Wants Slice Of Pizza Hut

Cote's Ex-Owner Wants Slice Of Pizza Hut

CBPE is among a quartet of bidders trying to obtain its hands on the pizza chain's revived UK operation, Sky News understands.

49
US Employment Numbers Add 215.000 In March

US Employment Numbers Add 215.000 In March

The solid jobs figures add to the picture of a resilient economy and expectations of more US interest rate hikes later this year.

81
Javid In Harbour Talbot To Face Steelworkers

Javid In Harbour Talbot To Face Steelworkers

The visit comes as a Sky Data poll suggests two-thirds of people would be in favour of nationalising the industry to rescue jobs.

54
seven injured after San Diego harbor cruise boat crashes into pier

seven injured after San Diego harbor cruise boat crashes into pier

Three people were taken to hospitals, San Diego Fire-Rescue Dept Capt. Joe Amador said. None of the injuries were life-threatening.

45