Deloitte comment on the Markit / CIPS UK Manufacturing PMI

Commenting on the Markit / CIPS UK Manufacturing PMI* released today, Mark Stephenson, UK manufacturing industry leader at Deloitte, said:

“The small dip of 0.4 in today’s UK manufacturing PMI reflects wider economic concerns, particularly in reaction to the volatility in China and continued weakness in Europe.

“Slowing growth in China and reported lower manufacturing output is a real concern for the industry. A reduction in demand from China for imported goods would affect both direct UK imports and those of the broader global manufacturing base that UK manufacturers supply. The supply chains of many UK manufacturers depend upon Chinese manufacturers and will be impacted to varying degrees. As a result, firms may see rising costs and supply difficulties.

“Greater stability in the EU has not yet brought with it a strengthened Euro, and this also continues to hold back UK export growth.

“These factors may mean that the remainder of 2015 is likely to be challenging for the sector.

“However, we are seeing UK manufacturers remaining optimistic about long-term prospects, with many investing in talent initiatives and innovative use of technologies to drive growth and increase performance.”

End

Note to Editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

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The information contained in this press release is correct at the time of going to press.

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* The Markit/CIPS UK Manufacturing PMI® is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 600 industrial companies. The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on the regional, and industry contribution to GDP. See more at: www.markiteconomics.com