CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Manufacturing sector recovery continues in UK

Article By: ,  Financial Analyst
June 2, 2014 6:15 PM

New data shows that the UK's manufacturing sector is continuing to grow, with one of the industry's strongest performances for more than two decades recorded.

A new report released by Markit indicated that production was increased in May in order to meet demand, although the overall reading was slightly down in May to 57.0 from 57.3.

Any figure over 50 denotes growth for the Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI), indicating that the industry is in a strong position at the present time.

"Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical. On those scores the latest survey provides some real positives," said Rob Dobson, senior economist at Markit.

The study also revealed that manufacturers across the UK have been taking on new staff in the last month in order to cope with the extra demands placed on them in May.

Growth areas

Consumer goods, machinery and equipment were among the areas where particularly strong areas of growth were recorded within the manufacturing sector during the month.

Factory production remains 7.5 per cent smaller than its pre-crisis peak, according to the new PMI report, although it is growing at a quarterly rate close to 1.5 per cent.

As manufacturing is believed to make up about ten per cent of the UK's economy, the sector's health is typically linked closely to the state of the economy overall. The manufacturing industry was particularly badly hit by the global financial slowdown, but has shown strong levels of recovery in recent months, boosting the economy as a whole.

Responding to the PMI data, manufacturing industry body the EEF stated that the figures show "the important role being played by industry in the UK's continuing recovery".

Neil Prothero, deputy chief economist at EEF, said: "The sector is firmly on track to expand for a fifth consecutive quarter, its strongest performance in four years. Signs of a pick-up in export orders are especially welcome."

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024