The Markit/CIPS UK Manufacturing PMI remained in positive territory in June at 51.3.
Anything above the level of 50 is considered to indicate growth.
The June figure is slightly down on May’s 52.0 and is the lowest number we have seen since September 2009.
Although there has been a small rebound in production there has been a weak domestic market and slower export and employment growth.
On a quarterly basis Q2 2011 saw an average PMI of 52.6, which is a large drop from Q1’s 59.8.
The chief executive of the CIPS David Noble said in the report that ‘The UK’s manufacturing sector is slipping into ‘growth-lite’ mode, a far cry from the strong expansion seen earlier in the year.’
He also noted that the UK’s austerity measures coupled with the Eurozone sovereign debt problems and monetary tightening in other areas of the world could cause future problems.
This makes it look unlikely that the BoE will be raising interest rates any time soon.
But the UK still has a far rosier outlook than Greece.
The Markit Greece Manufacturing PMI is still firmly down in negative territory at 45.5 albeit a notch up from May’s 44.5.
Although there was a rise in demand for Greek manufactured goods new orders actually fell in June and the month on month drop in the level of new business is described as ‘sharp’. This was despite Greek manufacturers continuing to cut prices as well as stock levels.
So production fell and, more worryingly for the people, firms have been shedding staff at a ‘solid rate’.
The only good news it seems from the report is that Greek goods are becoming more competitive in price. But without the sales they are going nowhere and, if demand does pick up, they may not have the stock to meet it.