PMI Index Reaches Four-Month High In August
Business specialists at Irwin Mitchell have welcomed new research which provides further evidence that conditions in the UK manufacturing sector are continuing to improve.
The latest Markit/CIPS purchasing managers’ index reached a four-month high of 49.5 in August, which marks a significant recovery from July and has hinted that the industry is edging ever closer to expansion.
News of the research has come just weeks after a study by the Manufacturing Advisory Service (MAS) revealed more than half of firms in the sector have seen orders increase in recent months and many expecting to enjoy further improvements before the end of the year.
Both studies are also in contrast to an EEF report which has suggested that many organisations are struggling in difficult conditions caused by the problems in the Eurozone.
Commenting on the figures, Paul Firth, a leading business lawyer and regional managing partner at Irwin Mitchell’s Sheffield office, said: “While the UK economy is by no means out of the woods, recent research has shown that a handful of sectors like manufacturing are increasingly seeing signs of improvement.
“This is particularly good news for areas which have a strong manufacturing base, such as the major business centres across Yorkshire. Indeed, MAS figures specific to the region showed that a number of firms are seeing orders grow and optimism in general increasing.
“Hopes will be high that this rise in positive sentiment will continue and the sector will continue to improve over the coming months.”