The downturn in the UK manufacturing sector eased in August, the Markit/CIPS manufacturing purchasing’ index has indicated, as increased volumes of domestic orders helped boost the sector’s output over the summer.
The index figure rose to a four-month high of 49.5 for August, up significantly from 45.2 in July.
It was the highest month-to-month jump in order levels in the history of the survey, which began back in 1992.
However, as the figure is below 50, it indicates the sector is still contracting.
Rob Dobson, economist at survey compiler Markit, said: "The marked easing in the rate of contraction at UK manufacturers is heartening”
A separate survey by the EEF also suggested that the sector’s output would bounce back in 2013 by 1.5%, as manufacturers are finally starting to see light at the end of the tunnel.
Invoice Finance for Manufacturers
Manufacturers have had it hard in recent years, especially with profit margins tightening and material and energy costs increasing.
The global economic situation is not helping either, as order levels have dramatically decreased across the all-important eurozone in recent months.
They can often struggle to access external business finance solutions through traditional funding houses, which in turn can delay growth plans and hinder the economy as a whole.
Why not give us Skipton Business Finance a call today on 0845 602 9354 to see how our invoice finance could quickly release the cash you have tied up in unpaid invoices.