John Leech, UK head of automotive at KPMG, comments on the UK PMI data released today by Markit / Chartered Institute of Purchasing and Supply.
“It looks like the feel-good factor is set to stay for the rest of the year with yet another set of positive figures for the UK economy.
“Passing the crucial 50 figure that marks an expansion in activity, August’s UK PMI index at 57.2points has set expectations for a surge in manufacturing output and employment during the second half of 2013, which may see GDP growth return to pre-2007 levels and trigger a jump in the pound.
“This growth is mainly driven by strong UK consumer demand as well as growth in demand from consumers in the Eurozone, our largest trading partner.
“However, the figures should be read with a bit of caution, as the demand in part reflects the replenishment of inventories by retailers. In addition, this surge may be tempered by steeply rising commodity prices in the next few months.”
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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.