PMI data published today gives a good impression of where manufacturing is heading in the future, says KPMG.
October saw UK manufacturing shrink at the largest rate since June 2009. PMI (Purchasers Managers’ Index) fell to 47.4 in the month – and this gives a clearer picture of where UK manufacturing is headed.
‘Despite GDP being up marginally a slow and challenging recovery is expected to ensue in the forthcoming quarters,’ said Glynn Bellamy, KPMG partner.
‘However, the data from the UK manufacturing PMI represents a clearer picture of where manufacturing is heading in the short term.
‘The sector is moving hesitantly forward with the knowledge that major export customers are revisiting expansion plans and investment in inventory as they attempt to assess the impact of the Eurozone crisis and general economic uncertainty on their end markets. As a result, this could delay investment and uphold a ‘wait and see attitude’ in the manufacturing sector.
‘Therefore, manufacturers are having to contend with volatile markets and manage short term demand fluctuations whilst continuing to ensure capacity is retained to support the underlying global growth which is expected to continue, albeit very slowly.’