EEF comments on PMI data

EEF, the manufacturers’ organisation

Responding to today’s (Purchasing Managers’ Index) PMI data, Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said: “Manufacturing activity ticked higher in July, bringing some welcome news from the sector and coming ahead of official statistics later this week which should also show that manufacturing output expanded in June.

“While the headline movement was positive, the story behind the index is a familiar one – decent domestic demand driven by consumers with strengthening purchasing power, contrasting with persistent challenges in getting exports moving and weak demand for investment goods in the oil and gas sector. This is good enough to keep employment prospects growing across manufacturing, but until something gives in export markets or oil and gas investments, the outlook for growth will remain modest.”