Manufacturing Recession Improvement

The Chartered Institute of Purchasing and Supply (CIPS) has recently reported that the manufacturing sector is still in recession but the figures for the month of April show a marked improvement in terms of output and new orders. The Purchasing Managers Index (PMI) for April was 42.9 from 39.1 in March. Employment, inventories and output prices fell at record pace. The biggest cuts in employment were by the larger companies but overall a third reported job losses. The PMI is moving away from its February record low.

(The Chartered Institute of Purchasing and Supply PMI Survey indicates 50%=neutral and below 50% means a contraction)