UK Index Shows Manufacturing Comeback

The UK manufacturing sector appears to be staging a swift recovery, according to the July Chartered Institute of Purchasing and Supply (CIPS) manufacturing survey. The CIPS activity index rose to a stronger-than-expected 52.7 in July, while June was revised up to 51.0 from the previous figure of 50.4. New orders surged to 59.7, while new export orders hit a new record high of 57.3. An index reading over 50 indicates an increase in manufacturing activity on the month, while a rating below 50 suggests a contraction. The July CIPS index is in line with recent official data that indicates the economy has started the first month of the third quarter in good health. On July 30 the Office for National Statistics estimated the economy had grown by 0.5% from the first quarter. CIPS is a UK-based trade association.