02 September 2016/Categories: Industry News, Operations Management
The Markit/CIPS Purchasing Managers Index (PMI) saw August’s index skyrocket five points to 53.3 after July’s 41-month low of 48.3. This marked the joint-highest month-on-month index increase in the survey’s near-25-year history, with manufacturing production increasing at the fastest rate for seven months.
A boost in new work was believed to be a key factor in the sharp production volume rise, with stronger demand, product launches and clients committing to new and previously postponed contracts. August’s PMI data indicated “a solid rebound in the performance of the UK manufacturing sector from the steep downturn that followed the EU referendum”, according to Rob Dobson, senior economist at IHS Markit.
Meanwhile, the Chartered Institute of Procurement and Supply said that “the Brexit brakes” were off. The group added that exchange rates had supported more orders from overseas, with the counter effect of a lower pound meaning that purchasing costs were higher.
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