Manufacturing activity grew by the smallest amount in seven months to open the second quarter of the year on a sharp slowdown in new orders, according to The Daily Telegraph. On Tuesday, the Markit/Chartered Institute of Purchasing and Supply purchasing managers’ index was reported at 54.6 for April, which is the lowest reading since September. The gauge fell over two points form the March reading, and disappointed economists that had been expecting a small increase. However, the reading marks 21 consecutive months above the crucial 50-point marker for growth.
Rob Dobson of Markit said, “The manufacturing growth spurt looks to be fading rapidly,” pointing to “new orders growth having collapsed from a booming pace” as a cause. The report also showed that the output prices index eased to 64.2 in April from the record high of 65.2 posted in March, although the reading was the third highest on records dating back to 1999. A separate report from the Confederation of British Industry showed that retailers consider sales to be “unseasonably poor, and that “orders with suppliers are expected to fall.” The volume of retailers reporting increasing sales in the year to April was +21, although the forward looking gauge posted -1, indicating that no growth is forecast for next month.
Click here to read the story on manufacturing from The Daily Telegraph.
Click here for coverage of retail sales, also from The Daily Telegraph.