Hollingsworth continues to think that things will improve for United Kingdom manufacturers later this year.
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The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) – a composite indicator of manufacturing sector performance – fell from 52.4 in March to 50.5 in April.
The PMI – where scores above 50 indicate expansion – came in at 51.7, a slight increase on March’s score of 51.6, though one of the weakest scores in the a year ago.
Five of the eight manufacturing sub-sectors also expanded over the month led by food and beverages, wood and paper and non-metallic mineral products.
The one-point April slide was larger than the 0.4 point dip consensus estimate of analysts, and brought the PMI index closer to striking distance of the 50 level that divides growth and contraction.
The output and new order categories rose above the neutral 50-point mark, indicating that “the stimulus policies the government has implemented have begun to take hold”, he said.
“An atmosphere of deep unease is building throughout the manufacturing supply chain, eating away at new orders, reducing British exports and putting more jobs at risk”.
“A sense of apprehension across the sector is being caused by enduring volatility in the oil and gas industry, falling retailer confidence and the uncertainty created by the European Union referendum”.
Meanwhile, cost pressures throughout the manufacturing sector intensified, with the inflation rate hitting the highest level since January 2013.
The ISM’s gauge of new orders declined to 55.8 last month from 58.3, while an index of order backlogs eased to 50.5.
He predicted GDP growth could slow to 0.3% in the current second quarter but warned: “Even this could prove optimistic”.
Caixin’s chief economist Dr He Fan said operating conditions had now worsened in each of the past 14 months. However, the economist cautioned against attributing too much of the recent weakness to “Brexit” jitters.
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Zhao Qinghe with the National Bureau of Statistics says the latest figures suggest the Chinese economy is gradually become more service-oriented.
