British manufacturing PMI climbs to 25-month high in June

LONDON, July 1 (Xinhua) -- The British manufacturing sector continued its solid second quarter performance into June, with the purchasing manager's index (PMI) climbing to a 25-month high of 52.5 in June, according a report released by Markit and the Chartered Institute of Purchasing & Supply (CIPS) Monday.

The manufacturing PMI in June was above the neutral mark of 50 for the third month running, indicating expanding activity and booming confidence.

Domestic market conditions improved further, while demand from overseas also strengthened in June. The latest expansion in British manufacturing production was broad based, with all of the sub-sectors covered by the survey signalling increases, said the report. The strongest rates of growth were recorded by the textiles and clothing, and food and drink categories.

"Manufacturers reported solid demand from domestic markets and clients based in Europe, China, North America, Scandinavia and the Middle East. A number of companies linked improved inflows of new work to strengthening confidence among clients and consumers, better weather conditions and the launch of new product lines," the report said.

Nevertheless, manufacturing employment was broadly unchanged in June, it indicated

The average reading over the second quarter as a whole was 51.4, which was the highest since the second quarter of 2011, the data also showed.

Rob Dobson, a senior economist at survey compilers Markit, said: "The near-term outlook for output also remains on the upside, as above-trend sales growth depleted inventories that manufacturers will need to rebuild later in the year."

"Taken with recent signs of service sector strength and a stabilizing construction industry, it paints a picture of British economic growth picking up," added Dobson.

David Noble, CEO of the CIPS, said firms would take heart from the drop in input costs, which has enabled them to reduce their own prices for the first time in over three years. "This has eased the pressure on margins and enabled manufacturers to stay competitive," he added.

http://news.xinhuanet.com/english/business/2013-07/01/c_132502157.htm