IHS Markit/CIPS PMI figures provide cause for optimism for Moretube Engineering
Strong figures recorded in the recent IHS Markit/CIPS manufacturing purchasing managers index [PMI] bodes well for British industry and manufacturing.
The manufacturing PMI hit 51.7 in February 2020, an increase of 1.7 on the previous month.
Considering that the 50 mark is the benchmark for expansion, news of the PMI heading into territory above that comes as welcome news for industry operators.
For Moretube Engineering, a firm in north Wales, the numbers will be of particular encouragement.
Director Richard Davies had spoken with The Parliamentary Review about the state of the manufacturing market in 2018, outlining that achieving the firm's goals and working to high standards had come at a cost.
Davies said: “Given the current competitive market, risking time and money on a promise of regional prosperity is very much a leap of faith. It is hoped that our ongoing preparations will position us to grasp the anticipated opportunities as they arise.
"We, like many other small businesses and families in north Wales, look to the UK and Welsh governments to provide us with the certainty needed to plan long term. Only by having a strong belief in what we do as a business and having the confidence to take positive steps will we continue to prosper.”
The recent success and certainty for UK business will have done much to fulfil Davies’ hopes of future prosperity.
Prime minister Boris Johnson’s landslide victory in December’s general election did much to dispel uncertainty in the political landscape, while the finalising of the UK’s exit from the EU has helped domestic demand recover.
City AM reports that the main factor which pushed up output growth was an increase in new orders, which coincided with business optimism rising to a nine-month peak.
IHS Markit director Rob Dobson said of the numbers: “The expansion of output was nonetheless the fastest since April 2019, as stronger demand from the domestic market led to the steepest increase in new work in 11 months.”