Page last updated at 15:23 GMT, Tuesday, 1 September 2009 16:23 UK

Dip in UK manufacturing activity

manufacturing
Car manufacturers have been more positive in recent weeks

Activity in the UK manufacturing sector unexpectedly declined last month, a survey has indicated.

The Chartered Institute of Purchasing & Supply (CIPS) index fell to 49.7 in August from a revised 50.2 in July.

A figure below 50 implies contraction rather than growth. August's figure was the first fall since February.

UK shares were hurt by the data in morning trade, but losses eased after figures showed the US manufacturing sector returned to growth last month.

'Healthier'

"The future picture for the UK manufacturing sector is still uncertain, and concerns will remain that the improvements seen in recent months may have been temporary rather than a sustainable recovery," said CIPS chief executive David Noble.

But Howard Archer, chief UK economist at IHS Global Insight, said the manufacturing sector still looked a lot healthier than a few months ago.

"Despite the fall in the headline figure, the August survey does little to dilute hopes that the UK economy will achieve expansion in the third quarter for the first time since the first quarter of 2008," he said.

"The manufacturing sector is currently benefiting markedly from the substantial stock adjustment that has taken place."



Print Sponsor


RELATED BBC LINKS

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific