The Markit/CIPS manufacturing purchasing managers’ index (PMI) for May fell from 50.2 in April to 45.9 in May which was the second steepest fall in the survey’s 20 year history. The Eurozone’s manufacturing sector PMI dropped to 45.1 from 45.9 in April.
Chris Williamson, chief economist at Markit said “All four of the largest Eurozone nations are now reporting worryingly sharp downturns in their manufacturing sectors”.
In Germany the PMI reduced to 45.2, in France to 44.7, Spain to 42 and Greece 43.1.
Without a clear plan from Brussels, Paris and Berlin manufacturers will continue to cut orders and jobs over the coming months. Another Markit spokesman said “This month’s drop is not simply linked to the ongoing crises of the Eurozone, but to increasing weakness of UK domestic markets”.
The manufacturing sector, which accounts for 10% of the UK economy, shed jobs for the first time in five months in May.
Tim Corfield comments ‘I’m slightly surprised that the MPC did not recommence QE again last week or even reduce interest rates further as Christine Lagarde suggested.’
written by TIm Corfield