British Factory Production is Growing at the Fastest Pace Since 2017

British industrial production grew at its fastest rate in nearly three years in July, as factories reopened and demand improved after easing closings.

The IHS Market / CBS Manufacturing Purchasing Managers Index rose to 53.3 in July from June’s reading of 50.1, in line with a previous preliminary estimate of 53.6 and its highest level since March 2019.

The output index – which IHS Market says currently gives a clearer picture of the sector’s safety – has risen to its highest since November 2017 at 59.3.

Supply orders grew for the first time in five months, and the level of optimism increased by the most in two years.

However, the index represents the pace of growth, not volume, and the sector still has a long way to go before it returns to the way it was before the closures.

Official data show that British factory production collapsed 28% over March and April, then rose 8% in May.

Car production in the first half of 2020 was the lowest since 1954 and less than 40% from the same period in 2019, according to sector data released last week.