The UK manufacturing growth had a 26-month low in June but has now picked up in July according to a survey.
In July, the Purchasing Managers’ Index (PMI) rose to 51.9 in July, from 51.4 in June. This shows good improvement as any figure above 50 indicated expansion.
Despite this result, it is still below the average of 54.3, which the sector has had since April 2013.
In addition, manufacturing has been at its lowest since September 2014 when it comes to the pace of growth of new orders, as this slowed to 52.2. Product expansion continues to be dependent on consumer goods manufacturing, which offset a contraction in investment goods. This includes goods such as plant and machinery, according to Markit.
The sterling-euro exchange rate sapped the demand for exports and new export orders contracted for the fourth consecutive month in July.