Afternoon:
9°c
Manufacturers enjoyed another bumper month in May as the weak pound boosted exports.
Figures today showed the recovery in the sector continued at pace last month amid strong demand for British-made goods overseas.
Rob Dobson, senior economist at Markit, said: “UK manufacturing maintained its blistering start to the second quarter.
Although production remains well below pre-recession levels, the sector is now recovering its losses at a surprisingly rapid pace.”
The Chartered Institute of Purchasing and Supply said its index of activity — where anything above 50 represents growth — held firm at 58 in May.
That was the same reading as the near 16-year high recorded in April and the eighth-consecutive month of expansion.
CIPS chief executive David Noble said: “The strength of recovery has taken everyone by surprise.
“We can't forget this has been driven by the weak sterling exchange rate bolstering export demand.
“Problems in countries such as Greece and Spain have strengthened the pound against the euro recently and could also have a severe impact on the eurozone economy.
“Given the euro countries are Britain's biggest trading partners, any double-dip recession there would undoubtedly damage the UK manufacturing sector.”
Reader views (2)
Would Keith Price or Val Daniels like to thank Gordon Brown for the weak pound?
Thought not.
- Dave Davies, Basingstoke, Hants, 01/06/2010 14:22
Report abuse
But manufacturing is now only 13% of GDP - less than half what it was before Labour's thirteen years of misrule. So, a weak pound is not much of an advantage and the obverse is that imports are costing us much more since the de facto devaluation of sterling over the past year or so. This recent so-called fragile recovery has been just a stimulus bubble that is now rapidly deflating despite Pollyanna businessmen talking up the market as usual.
- Cassandra, London, 01/06/2010 11:48
Report abuse
