The Purchasing Managers Index released today has revealed that Britain’s manufacturing sector continued to contract in June.
Despite negative growth, the figures are better than previously expected. The index rose to 48.6 in June from a three year low of 45.9 in May, economists had forecast a reading of 47.4. (A reading of less than 50 indicates a contraction in activity).
Rob Dobson, senior economist at data compiler Markit, stated that
“There’s no denying that the second quarter as a whole is looking weaker than the first quarter…Manufacturing output may have contracted by at least 0.5 percent and therefore acting as a substantial drag on the economy for the fourth successive quarter”.
Despite the contraction in the manufacturing further figures have reported an increase in job creation compared to last year. Also released today the Reed Job Index outlines that there are more new vacancies this year than compared to last year.
The report found that new vacancies increased by 7.4% year on year, the engineering sector had the highest index score of all sectors, enjoying 34% annual growth.
Month on month comparisons show a slight contraction in June of -4.8%, however this has largely been accredited to extended bank holiday in June.
