The speed at which the UK manufacturing sector is shrinking appears to be slowing, according to a new survey released yesterday.
The figures, published by the Chartered Institute of Purchasing and Supply (CIPS), point to an easing of pressure as the rate of decline for new orders slowed in June. Crucially, the survey also suggests that production actually increased across the manufacturing sector.
David Noble, chief executive of CIPS, said that the survey shows the sector may be coming out of recession as demand recovers. "After months of gloom and doom, there are some signs of relief for the UK manufacturing sector", he said.
Last month was the first time in 15 months that the CIPS that the Purchasing Managers" Index breached 50 - signifying increased production.
The manufacturing sector has benefited from the competitive price of sterling in recent months, but groups like the CBI are warning that sustained growth may yet prove elusive.