UK Manufacturing Index Remains Low At 40.7 In May Although Slight Rise Observed - Tracker

UK Manufacturing Index Remains Low at 40.7 in May Although Slight Rise Observed - Tracker

The United Kingdom is still experiencing a significant downturn in the country's manufacturing sector, as the manufacturing Purchasing Managers' Index (PMI), a measure of market optimism, stood at 40.7 in May, although a slight rise was reported from April's record low as the COVID-19 outbreak continues to cause widespread economic disruption, the IHS Markit market tracker said Monday

MOSCOW (Pakistan Point News / Sputnik - 01st June, 2020) The United Kingdom is still experiencing a significant downturn in the country's manufacturing sector, as the manufacturing Purchasing Managers' Index (PMI), a measure of market optimism, stood at 40.7 in May, although a slight rise was reported from April's record low as the COVID-19 outbreak continues to cause widespread economic disruption, the IHS Markit market tracker said Monday.

According to the market tracker, the PMI, was up 8.1 percentage points in May from the record low of 32.6 in April.

"Those who typically see the glass half empty will note that the UK manufacturing sector remained mired in its deepest downturn in recent memory. Output, new orders and employment fell sharply again in May as restrictions to combat the spread of COVID-19 caused further widespread disruptions to economic activity, demand and global supply chains," IHS Markit Director Rob Dobson said in a report.

The survey found that the UK is currently experiencing some of its steepest ever declines in output, domestic demand, and new exports. Pockets of growth were observed in industries that have begun producing personal protective equipment amid the ongoing health crisis.

The UK's manufacturing PMI in December, before the first COVID-19 case was reported in the country, stood at 47.5.

On Friday, the Society of Motor Manufacturers and Traders reported that the number of cars manufactured in the United Kingdom in April fell by 99.7 percent year-on-year to the lowest level since World War II amid an industry shutdown caused by the coronavirus disease pandemic.

The PMI is used as a marker of economic activity, and a score above 50 indicates that business leaders believe that the manufacturing economy is growing. Any score below 50 means that leading industry figures are predicting economic contraction.