Commenting on the Markit/CIPS Manufacturing Purchasing Managers’ Indices (PMIs) for August released today, Duncan Johnston, UK manufacturing industry leader at Deloitte, said:
“August’s strong PMIs suggest that the UK manufacturing sector remains in good health contrary to some expectations. It is particularly encouraging to see in these figures that jobs are being created in the sector.
“Export demand has increased, boosted by the further depreciation of Sterling against the Euro. This continues to drive expansion in UK manufacturing with today’s data backed up by last week’s CBI quarterly survey.
“One potential cloud on the horizon is the consumer economy, where rising inflation, combined with sluggish wage growth is causing a squeeze on disposable incomes. We have yet to see this feed through to manufacturing, but if the consumer squeeze continues it will dampen domestic demand.”
