Markit / CIPS UK Manufacturing PMI figures
1 May 2015
Commenting on the latest Markit / CIPS UK Manufacturing PMI figures released today, Mark Stephenson, UK manufacturing industry leader at Deloitte, said:
“The PMI marginally fell by 2.1 to 51.9 in April. Whilst this is broadly in line with other economic data released this week, it clearly demonstrates that although the recovery of the manufacturing and industrials sector continues, the pace is slowing.
“This decelerating pace of growth is strongly linked to the general uncertainty that has crept into the manufacturing and industrials sector in the past few months. The strengthening of the pound against the euro continues to bring concerns over exports, impacting on the UK’s competitiveness and margins. Furthermore, the looming General Election adds further unease to the sector in terms of EU membership and any possible changes to taxation. This was reflected in Deloitte’s most recent Chief Financial Officer survey, where post-election uncertainty, policy change and a referendum on EU membership rank as the biggest concerns for UK business.
“As a sector that employs large workforces, has significant legacy pension deficits, is capital intensive, and trades across borders, there is strong linkage between any policy changes on taxation and the impact on manufacturing. Also, as the EU is the sector’s major export market, the uncertainty around UK membership is likely to be playing on the minds of manufacturing executives as we approach 7 May.
“With the exception of these head winds, the PMI shows manufacturing company sentiment is still relatively positive at this stage. Today’s figures underline a long period of growth in a sector that is proving to be very resilient.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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