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Uk Factories 'booming Again', Pmi Data Suggests

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http://www.theguardian.com/business/2013/sep/02/uk-factories-booming-manufacturing-pmi

Industry's order books and output are growing at their fastest pace in almost two decades as Britain's manufacturing sector emerges strongly from the deep recession of recent years.

The monthly snapshot from the Chartered Institute of Purchasing and Supply/Markit said the return of confidence, a rosier outlook for exporters and demand for new products had all helped UK factories in August.

The purchasing managers index (PMI) rose from 54.8 in July to 57.2 last month – its highest level in two and a half years.

After struggling during 2012, manufacturing has put on spurt since the spring of 2013, with the PMI above 50 – the cut off level between expansion and contraction – for the past five months.

Recovery!

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I'm sure I read recently that the effects of devaluation on boosting exports take much longer than expected to kick in - up to 5 years I think I read - so maybe we're finally seeing this happen now?

Edited by oldsport

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http://

www.markiteconomics.com/Survey/PressRelease.mvc/89b62348c597490698dae25b0324e7a7

It seems a bit of an improvement over recent years but it's at a similar level to 2010/2011. Nothing exceptional but better than in the immediate aftermath of the economic collapse.

The media will likely trumpet it to the skies of course.

Industry's order books and output are growing at their fastest pace in almost two decades as Britain's manufacturing sector emerges strongly from the deep recession of recent years.

The monthly snapshot from the Chartered Institute of Purchasing and Supply/Markit said the return of confidence, a rosier outlook for exporters and demand for new products had all helped UK factories in August.

From the PMI chart it looks more like the fastest pace in 2 years?

Edited by billybong

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Rob Dobson, senior economist at survey compilers Markit:

"The UK's factories are booming again. Orders and output are growing at the fastest rates for almost 20 years, as rising demand from domestic customers is being accompanied by a return to growth of our largest trading partner, the eurozone.

As usual claims being made that are strong on sound bite but weak on supporting facts. That's not to say that the rate of increase might be high from a low base but that doesn't show up in the PMI itself which is what the article is mainly about.

As usual it would have been helpful if the claim were to be backed up with actual figures - but it isn't.

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better than in the immediate aftermath of the economic collapse.

We haven't had the collapse yet. The crash/collapse is something we can all look forward to.

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We haven't had the collapse yet. The crash/collapse is something we can all look forward to.

Agreed. We did have a bit of one which is what I was referring to and I wasn't suggesting it's over by any means.

The rest of my post was implying that the current confidence that it's over is well over egged.

Edited by billybong

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meanwhile back in the real world i saw a standard loaf for 1.80 tonight and diesel at 1.52 a litre!

the politicians are more concerned for the population of a far off land than the people they say they represent.

some recovery.

Edited by TheCountOfNowhere

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There was a fly in the ointment with today's positive manufacturing news:

"The main negative finding from the latest survey

was a marked upsurge in cost inflationary

pressures at manufacturers. Average input prices

rose at the fastest rate for two years and at an

above survey average pace. The month-on-month

upward movement in the Input Prices Index (10.4

points) was the second-steepest in the survey

history. Companies reported higher prices paid for

commodities, feedstock, oil, paper, polymers and

timber. Average selling prices also increased, but to

a much lesser degree than registered for costs."

http://www.markiteconomics.com/Survey/PressRelease.mvc/89b62348c597490698dae25b0324e7a7

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There was a fly in the ointment with today's positive manufacturing news:

"The main negative finding from the latest survey

was a marked upsurge in cost inflationary

pressures at manufacturers. Average input prices

rose at the fastest rate for two years and at an

above survey average pace. The month-on-month

upward movement in the Input Prices Index (10.4

points) was the second-steepest in the survey

history. Companies reported higher prices paid for

commodities, feedstock, oil, paper, polymers and

timber. Average selling prices also increased, but to

a much lesser degree than registered for costs."

http://www.markiteconomics.com/Survey/PressRelease.mvc/89b62348c597490698dae25b0324e7a7

Thanks for posting that, good to be able to get the facts behind the ********

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I think the Germans refer to this sort of economic activity as a 'brush fire' based on easy money.

Fair play though, it is 'broad based' which I guess means we're supposed to believe in it.

Change you can believe in,at last.

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Change you can believe in,at last.

It's astounding what one man can do in such a short space of time.

Economic problems that have dogged us for 6 years have vanished in a flash.

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What seems strange is where the demand surge is coming from to drive this manufacturing boom- it's not the US or Europe and the Brics are not all that healthy anymore- is it just a case of a devalued currency making us the best looking horse in the glue factory?

Edited by wonderpup

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What seems strange is where the demand surge is coming from to drive this manufacturing boom- it's not the US or Europe and the Brics are not all that healthy anymore- is it just a case of a devalued currency making us the best looking horse in the glue factory?

Credit impulse, wp. It's not the creation of debt, it's the acceleration of debt that corresponds with changes in aggregate demand. Even a slowdown in the rate of deleveraging can generate positive GDP growth. There's certainly been a marked acceleration in mortgage origination in the US and UK this year. Plus Osborne is still running a primary deficit of 7.5% and Europe has climbed off the floor a bit (below). Nothing sustainable, the opposite of sustainable in fact, but I don't really need to tell you that.

http://soberlook.com/2013/09/euro-area-recovery-continues-could.html

Eurozone+PMI+by+country.PNG

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