UK’s manufacturing activity goes up
The manufacturing activity in UK has finally seen some good figures. After staying down for a very long time, it touched its best monthly performance, ever since October 1994. This has been recorded by a research done by Markit and the Chartered Institute of Purchasing and Supply.
As per the research, the data has shown that the purchasing mangers' index (PMI) has risen by 57.2 for the month of April. This is higher than the 56.5 figure that appeared in February.
The index, which is calculated with data taken from new orders, production, employment and purchasing indicators, has shown that the industrial sector is doing well.
Indicators above 50 indicate that the sector is rising, while anything below 50 means contraction.
Economists believe that this is a good sign and that this is expected to be sustainable. The main reason behind this is that the base of the manufacturing sector has grown considerably.
But, they fear that the recovery phase, which is still in infant stage, can turn out to be a serious threat to this development.
The final quarter of 2009, posted an economic growth of 0.4 per cent.