Britain has achieved its highest production figures in 30 years. The British manufacturing sector broke a record on the wave of recovery of the national economy from the pandemic, writes the BBC.
The Purchasing Managers’ Index (PMI) of manufacturing activity hit a high of 65.6 percentage points in May, up from 60.9 percentage points in April, according to reports from analytical firm IHS Markit. Any value above 50 indicates growth, analysts explained. Such a value has not been recorded in the United Kingdom since 1992.
“A record increase in new orders by residents, increased exports contributed to the sharpest increase in manufacturing in nearly three decades of observation,” explained IHS Director Rob Dobson.
Dobson suggested that the increase in production was driven by the country’s lifting of coronavirus restrictions and COVID-19 vaccination campaigns.
British economists emphasize that the increase in production has not yet turned into higher prices only because most manufacturers have purchased raw materials at a forward price (fixed at the conclusion of the contract).
At the end of May analysts updated growth forecasts for the global economy as a whole under a more optimistic scenario. It will be 5.8 percent in 2021 and 4.4 percent in 2022. The UK is one of the G7 countries showing the most outstanding rate of economic “recovery” from the effects of the pandemic. The Organization for Economic Cooperation and Development (OECD) notes that Brexit will hit the state as hard as the coronavirus.