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East Midlands Chamber News

Manufacturing confidence returns

Manufacturing confidence rebounded in August from a 41-month low in July.

The month-on-month Markit and the Chartered Institute of Procurement and Supply, which jointly publish the data, figure saw the joint-highest rise in the 25-year history of the report, climbing from 48.3 to 53.3, where 50 is the mean.

It is thought that the lower value of Sterling against leading global currencies contributed to the renewed confidence as it made exported British-made goods cheaper and led to a raft of new orders.

Scott Knowles, Chief Executive of East Midlands Chamber, said: “July’s figure was quite obviously just a reaction to the EU Referendum result and we said at the time that it shouldn’t be regarded in isolation.

“The August rise is higher than might have been expected but, again, we would urge a degree of caution as this is a volatile table and we would expect to see it settle closer to its long term average of 51.5 in coming months.

“Manufacturing and engineering will be vital to the success of the UK post-Brexit and, as the spine of the sector in the UK, these figures are particularly pertinent to the East Midlands.”