A recent Markit survey, which is based on its monthly UK Purchasing Managers’ Index (PMI) reports, has shown that UK-wide manufacturing growth increased in May.
The PMI figure rose to 52 in May, up from 51.8 in April, with high demand from the domestic market helping to compensate for lower overseas demand.
Though manufacturing accounts for approximately 10 per cent of the UK economy, May’s growth increase was weaker than analysts had initially predicted, but this has been attributed to lower exportation rates and the strength of the pound.
Rob Dobson, senior economist at Markit, highlighted the fact that while the figure indicated an increase in growth it also “called into question” predictions for how the UK economy is expected to perform in the second quarter.
Mr Dobsons said: “Manufacturing looks on course to act as a minor drag on the economy, as the sector is hit by a combination of the strong pound and weak business investment spending.”
EEF’s chief economist, Lee Hopley, said that manufacturing was still growing, despite disappointment that the rate of growth was not as high as hoped for at the start of 2015.
She said: “Much of this weakening is down to the impact of the decline in oil and gas activity on the supply chain.”
The EEF represents about 25 per cent of the UK’s manufacturers, and Ms Hopley said the “weakening trend” for the sector could continue to the end of the year.