We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedChange Management

Manufacturing shrank in June


New orders continued to fall for the second straight month in June

Article comments

Manufacturing shrank in June, new data showed on Monday, adding to evidence that the second quarter is worsening and raises pressure on the Bank of England to begin another round of quantitative easing.

New orders continued to fall for the second straight month in June, according to the Markit/CIPS purchasing managers' index (PMI)

The index rose to 48.6 last month from May's three-year low of 45.9, beating expectations for a more modest climb to 46.5, but it sat at below the 50 mark that divides growth from contraction for its second month.

There's no denying that the second quarter as a whole is looking weaker than the first quarter," said Rob Dobson, senior economist at data compiler Markit.

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.

The economy contracted 0.3 percent in the first three months of the year and having shrunk at the end of 2011 it met the technical definition of recession.

With economists seeing tepid growth ahead at best, and only a mild bounce next quarter from London's hosting of the Olympic Games and the subsequent tourism and ticket sales, the Bank is widely seen restarting its programme of quantitative easing asset purchases.

The Bank is expected to top up the £325 billion of cash it has already pumped into markets with another £50 billion when it meets on Thursday as falling inflation gives it more scope to support the battered economy.

Share:

Recommended Articles

Comments

Manufacturing shrank in June
Change Management

Ocado: Online food is not our bread and butter

Ocado: Online food is not our bread and butter

ComputerworldUK meets Ocado CTO Paul Clarke to find out why the company believes it is a tech company, not a retailer, at heartmore ..


Big increase in UK online sales tracked by IMRG Capgemini

Estimated £8.1 billion spent onlinemore ..

BHP Billiton names CFO Graham Kerr boss of new demerger business

BHP Billiton announced plans to separate its main business to simplify the group and boost shareholder valuemore ..

Online retailers to benefit from superfast broadband

Government hopes that 95 percent of the population will have superfast broadband by 2017more ..

How new technologies are 'disrupting' shared services

A whole new model with less staff, more focus on intellectual capabilities and localised staffing is evolvingmore ..

Car industry’s greatest challenge is the shift to software

BMW’s outage illustrates the minefield manufacturers are navigating in light of the connected carmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *