• but conditions remain challenging with the global scene a ‘mixed bag’, according to KPMG
The UK Manufacturing PMI for May rose to 51.3, a 14 month high, according to figures released today by the Chartered Institute of Purchasing and Supply (CIPS). Driven by higher output, new orders and a reduction in input prices, this recent upturn has also led to an increase in employment in the sector for the first time since February.
Stephen Cooper, Head of Diversified Industrials at KPMG in the UK, comments:
“The UK PMI figures are encouraging, with broad based domestic activity leading the way in increased orders. Exports also contributed, albeit to a lesser extent, with higher demand in key Eurozone economies, France and Germany. Hopefully this reflects, alongside a marginally better view on job creation, increased confidence within the sector.
“The wider global scene is, of course, vital and it is fair to say it is a ‘mixed bag’. The slowing of the manufacturing downturn in the Eurozone, the UK’s biggest single export market, is a welcome development. However continued weak demand means that business conditions remain challenging.
“Elsewhere, the US will hopefully report a continued mildly positive manufacturing view, underpinned by automobile and residential housing activity. However, in Asia the situation has deteriorated across the region, with China and Taiwan contracting last month, tempering the more optimistic news elsewhere.
“The manufacturing sector continues to contend with challenging conditions but today’s news is a shot in the arm for UK manufacturing, particularly so with the improved view in the Eurozone.”
For further information please contact:
Bona Boraliu, KPMG Press Office
0207 6941482 or firstname.lastname@example.org
Notes to editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.