Domestic demand lifts UK manufacturing in May

Suzie Neuwirth

THE UK’S manufacturing sector hit a 14-month high in May, due to increased output and new orders.

Data from the Markit/CIPS Purchasing Manager’s Index recorded a figure of 51.3 per cent in May, up from 50.2 in April. 50 or above indicates growth.

The domestic market was the main driver of new order inflows, with the strongest performance seen from consumer goods producers.

“The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led to faster growth of output and new orders,” said Rob Dobson, senior economist at Markit.

“Output is also likely to be raised further in the coming months, as firms refill warehouses after stronger than expected demand has led to a sharp depletion in finished goods stocks.

“The tentative return to job creation in the sector in May also suggests that manufacturers are becoming more confident in the outlook.”