U.K. Manufacturing Contraction Eases in Sign of Slow Recovery
U.K. manufacturing shrank at a slower pace in May as lockdown restrictions slowly started to ease.
(Bloomberg) --
U.K. manufacturing shrank at a slower pace in May as lockdown restrictions slowly started to ease.
IHS Markit’s Purchasing Managers Index for the sector rose to 40.7 from the record low 32.6 in April. There were pockets of growth in healthcare-related products, but output and employment continued to decline.
Britain has been in lockdown since March to prevent the spread of the coronavirus, forcing workers to say home and many shops to close. Prime Minister Boris Johnson has now started easing some of the measures, though the economy remains hobbled.
“The worst of the production downturn may be behind us,” said Rob Dobson, director at IHS Markit. “However, changes to working practices, uncertainty about how long the Covid-19 restrictions may be in place for, weak demand and Brexit worries all suggest the U.K. is set for a drawn-out economic recovery.”
The survey was conducted from May 12 to 26.
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