New Bank chief greeted by welcome manufacturing growth

The UK manufacturing sector saw its strongest period of growth for two years in June, according to a well-respected survey. The Markit/CIPS purchasing managers’ index (PMI) increased to 52.5, the highest level recorded since Spring 2011, with any figure above 50 indicating expansion. The same survey compiled in May saw the PMI figure at 51.3, which was at the time the highest figure recorded since March 2012. Other data that has emerged in the last week has suggested the services sector is also showing signs of strength, whilst the construction sector is stabilising; a sector which has struggled over the last few years to grow. New governor for the Bank of England, Mark Carney, will be encouraged by the latest economic data. The Canadian takes over from Mervyn King and is the first foreigner in charge of the Bank in its 319-year history. One of his first tasks is to decide whether to push for more stimulus measures at this week's meeting of the Bank of England’s Monetary Policy Committee.