British manufacturing grew for the first time in 16 months during July, boosted by the fastest flow of new orders since November 2007. According to the Chartered Institute of Purchasing & Supply (CIPS), the Purchasing Managers Index, which measures activity in the manufacturing sector, rose from a reading of 47.4 to 50.8 between June and July. It is the first time the measure has risen above 50, the dividing line between contraction and growth, since March 2008. David Noble, chief executive of CIPS said: "The manufacturing sector has clearly pulled out of the nosedive it was in earlier this year and is no longer plummeting." He said customers had cut inventories so severely in the downturn that they were now in need of new stock in order to meet improved sales. However, Mr Noble warned it was still early days and said smaller businesses continued to bear the brunt of the recession.
According to the Chartered Institute of Purchasing & Supply (CIPS), the Purchasing Managers Index, which measures activity in the manufacturing sector, rose from a reading of 47.4 to 50.8 between June and July. It is the first time the measure has risen above 50, the dividing line between contraction and growth, since March 2008.
David Noble, chief executive of CIPS said: "The manufacturing sector has clearly pulled out of the nosedive it was in earlier this year and is no longer plummeting." He said customers had cut inventories so severely in the downturn that they were now in need of new stock in order to meet improved sales. However, Mr Noble warned it was still early days and said smaller businesses continued to bear the brunt of the recession.
