Manufacturing employment rises

Tue, 1 Jun 2010

Employment in the manufacturing sector has risen for the second month in a row, according to the latest data from the Markit/CIPS index.

The rate of jobs growth was only slightly below April’s three-year high, while the headline seasonally adjusted Purchasing Managers’ Index (PMI) was steady at 58.0, in line with April’s fifteen-and-a-half year high, consistent with a marked rate of expansion.

David Noble, chief executive at the Chartered Institute of Purchasing & Supply, says: “The strength of recovery of the UK manufacturing sector has taken everyone by surprise – this time last year, the industry was on its knees. While the turnaround so far this year is obviously good news, we can’t forget this has been driven in large part by the weak sterling exchange rate bolstering export demand. Problems in countries such as Greece and Spain have strengthened the pound against the Euro recently and could also have a severe impact on the Eurozone economy. Given the euro countries are Britain’s biggest trading partners, any double-dip recession there would undoubtedly damage the UK manufacturing sector.”