U.K. Manufacturing Output Rises Before Brexit
U.K. manufacturing unexpectedly rose in June to its fastest pace in five months, beating analysts estimate of 50.1.
The survey that was carried out before the June 23 referendum showed that Purchasing Managers’ Index increased to 52.1 in June from 50.4 in May, Markit Economics reported on Friday in London.
Although the Brexit effect is yet to reflect in the data, Bank of England Governor Mark Carney said on Thursday while address the nation that the economic outlook has deteriorated and monetary easing may be needed within to stimulate the economy within months.
While the extent of Brexit on the economy may not be known for months, economists have said it is unlikely this growth recovery can be sustained since it was before the Britain exit the European Union.
“Whether this growth recovery can be sustained will depend heavily on whether the current financial and political volatility spills over to the real economy,” said Rob Dobson, an economist at Markit. “There’s a clear risk that ongoing uncertainty will have at least some short-term impact.”