"With forward-looking indicators such as new orders and the demand-to-inventory ratio also ticking higher, the sector should at least be less of a drag on broader GDP growth in the second quarter"
-Markit Senior Economist Rob Dobson
Activity at Britain's factories picked up last month, boosted by upbeat export orders and improved output levels, the Chartered Institute of Purchasing and Supply said Wednesday. A gauge of factory activity improved to 49.8 from 48.6 in March, beating analysts' expectations of a 48.5 reading, adding to signs the economy is showing signs of recovery. Still, the figure is below the 50 threshold which separates growth from contraction. Last month, manufacturer's benefited from a modest improvement in the number of new export orders, which sales in North America, the Middle East, Latin America and Australia also increased. Still, manufacturing sector remains under pressure due to a weak demand in the Eurozone, which is struggling to grow.
"Following the poor start to the year, when manufacturing acted as a drag on the economy in the opening quarter, it is welcome to see the sector showing signs of stabilizing," Markit Senior Economist Rob Dobson said in the report. "With forward-looking indicators such as new orders and the demand-to-inventory ratio also ticking higher, the sector should at least be less of a drag on broader GDP growth in the second quarter."
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