With the British economy slowly strengthening, news of the manufacturing sector growth being at a two year high, will no doubt add to the optimism needed to bring the country back on its financial feet.
A survey in June showcased figures to highlight our gradual economic recovery. It was revealed that The Chartered Institute of Purchasing & Supply PMI (Purchasing Managers Index) increased to 52.5 last month, showcasing its highest level since May of 2011, any results that are showing above 50, indicates a significant boost in that sector. The figure only amplifies the further successes in the UK economy growth, increasing the positivity, especially with recent data being released; showing the general economic growth in the UK has risen by 0.3% in the first three months of this year. Other important data suggests the services and construction sectors are now stabilising, therefore showing further indications of strengthening and growth within other important areas.
Senior Economist, Rob Dobson of Markit, said he now expected a Gross Domestic Product growth in the second quarter of the year, predicting it to rise 0.5%.
‘The near-term outlook for output also remains on the upside’.
Markit declared that manufacturing production levels were reported to have increased at their quickest rate since April 2011, whilst new business managed to increase at the fastest pace since February of that same year.
May’s PMI reading was also revised up to 51.5 from 51.3.
Further adding to other sectors picking up, the encouraging news from the Bank of England declaring mortgage approvals hit a three and a half year high in May of this year ultimately shows the property market is also on a steady increase.
David Tinsley, UK economist at BNP Paribas comments, “As Mark Carney takes up his position these data flow confirm two trends that have been developing in the UK”.
“First the manufacturing sector looks to be in better shape. Second the housing market is picking up.”
“For Mr Carney the question is whether the improvement in the activity data is strong enough and whether it will prove enduring.”
Not only has the manufacturing and housing market grown, figures show the incline in the Construction sector along with them. Numbers declare 51.0, from 50.8, highlighting an increase from May of 2012; the highest it’s been since last year.
“The improvement in overall construction output simultaneously raises chances of strong second-quarter UK GDP growth, and reduces the likelihood of imminent additional policy stimulus from the Bank of England,” said Tim Moore, Senior Economist at Markit.
From a Cushillo Personnel point of view, with one of our divisions on the increase, this can only bring good things to, not only us, but the future of manufacturing recruitment. Having an abundance of candidates with extensive manufacturing experience with the job market as it is, has been a struggle. With the statistics growing, the gradual change is welcome news for the manufacturing businesses, people in the industry and recruiters.
With such a steady increase in figures, it’s no wonder numerous sectors are looking to a bright future. With the statistics on the rise, we can only hope the manufacturing sector can cause a ripple effect amongst others, which will begin a gradual incline in business and recruitment, ultimately encouraging substantial economic stability and growth in the UK.