The UK-based Purchasing Manager’s Index – a measure of the buying habits of those responsible for securing materials for manufacturing firms – ventured into positive territory for the first time since November 2007 with a value of 53.7. Any index reading greater than 50.0 indicates a net increase in buying activity.
Despite the results, analysts are quick to point out that the British economy remains at a crossroads and recovery at this point is still far from certain.
“Job losses are still running at a fast rate and cost pressures are starting to re-emerge,” Rob Dobson, senior economist at Markit Economics, which gathered the survey data. “Official data show that manufacturing employment is at its lowest level since comparable records began and output is at its mid-1992 level,” Dobson said, adding that the road to recovery “is likely to be long and uncertain.”
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