EEF comment on the latest PMI data

Commenting on the latest PMI data, Ms Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said: “The bottom line from this figure is that the relatively rapid acceleration in growth seen in the first half of 2014 will ebb over the second half of the year. The lower reading than previously shouldn’t set off any alarm bells as the indicator is still consistent with a decent pace of growth across the sector and, continued prospects for more job creation.

“The survey also points to companies benefiting from new product developments and efforts to sell into emerging markets. Nevertheless the patchy industrial performance across Europe, initial signs of some cost pressures emerging and, capacity issues in the supply chain could yet weigh on the sector in the coming months.”