Transatlantic factory data point towards recovery

By GENN

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On both sides of the Atlantic it appears the manufacturing sector is showing signs of economic momentum. In the UK output in the manufacturing sector increased at its fastest pace in six years for the month of August.

The IHS Markit/Cips purchasing managers’ index was up to 55.2 in August, an improvement on July’s figure of 53.3. Rob Dobson the director at IHS Markit said the positive data was, “led by an upturn in domestic demand and signs of recovering exports” and that business optimism was “encouragingly robust and close to July’s recent peak.”

In the United States manufacturing activity also increased with new orders at their highest level in over 16 years. The index by ISM showed activity up to 56 in August, with July at 52.2. However caution still remains with Chris Rupkey, chief economist at MUFG saying, “the economy isn’t back to normal regardless of what these upbeat surveys of purchasing manager executives are telling us.” 

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