July 2011 | Angeline Albert
capacity of UK manufacturing to meet rising demand improved in June, but could
not stop the sector’s growth falling to its lowest level since September 2009.
to the Markit/CIPS UK Manufacturing PMI it reached 51.3 in June. However, this
was a slower rate of growth compared to the 52 recorded in May, as new orders
fell for the second successive month.
domestic market and a smaller rise in exports, due to a slowdown in global
economic growth, affected the sector’s order book levels.
prices also eased last month, and manufacturing production experienced a modest
rise. Companies attributed this to new product launches, catching up on backlogs
of work and fewer bank holidays than in May.
growth in the sector also slowed, with the rate of increase at a nine-month
low. Companies reported leavers were not being replaced and temporary staff
were being released.
Dobson, senior economist at Markit and
author of the PMI said it was “disappointing to see that the easing in supply
chain delays has yet to feed through to a much-hoped-for revival in
strong headwinds already in place and austerity measures likely to put
increasingly counteractive pressure on domestic and consumer demand, it looks
as if manufacturing has entered a slower growth phase which could be with us
for some time,” he said.
Noble, CEO at CIPS, added: “Manufacturers remain in cautious spirits as the
global slowdown has been constraining export growth. Some are reducing
inventories to protect precious cash flow, raising possible questions about
their ability to raise output quickly should economic conditions improve.”