The British manufacturing sector seems to have bounced back from its post-Brexit dip, according to the latest PMI figures from IHS Markit.
British factory activity hit 53.3 in August, the highest in 10 months and a big improvement on July’s figure which had slipped into contraction.
The purchasing managers index (PMI) figures from IHS Markit are given as a number between 0 and 100, with anything above 50 signalling growth.
Manufacturing for the Eurozone came in at 51.7, with Germany and the Netherlands recording the highest rates of growth. However, Italy slipped into contraction at 49.8, the latest in a series of disappointing economic data from the country. France also hit a two month low at 48.3.
The Chinese manufacturing sector saw a similar hike, up to 50.4 in August and well above analysts’ expectations. The figure is the highest reading since October 2014. Â I
India saw manufacturing hit a 13 month high, climbing to 52.6.
IHS Markit senior economist Rob Dobson commented:
“The August PMI data indicate a solid rebound in the performance of the UK manufacturing sector from the steep downturn that followed the EU referendum. Companies reported that work that had been postponed during July had now been restarted, as manufacturers and their clients started to regain a sense of returning to business as usual”.
The pound is up 0.87 percent against the dollar on the back of the PMI figure, touching an intraday high of $1.3266 against the dollar immediately after the results were released.