British manufacturing PMI edges up to 52.0 in May

British manufacturing purchasing managers' index (PMI), a gauge of the industry activities, edged up to 52.0 in May 2015 from the revised 51.8 in April 2015, said Markit Economics Limited Monday.

The data was lower than the market estimates consensus of 52.5, though it has stayed above the neutral 50.0 mark in each month since April 2013. A figure above 50 suggests that the sector is growing.

British manufacturing sector saw further modest expansions of both output and new orders in May, as a solid domestic market continued to offset lack-luster demand from overseas, said the London-based survey compiler.

Production of the sector rose again in May, registering its 27th consecutive month of expansion, but the rate of output growth edged lower, said Markit.

New business saw a further increase, but the trend in new business from overseas remained depressed compared to conditions in the domestic market, data showed.

Manufacturing employment increased for the 25th successive month in May, but recording the weakest growth during the current sequence of rising staffing levels, it also said.

Rob Dobson, Senior Economist at Markit, said that expectations of a broad rebound in British economic growth during the second quarter are "called into question" by these readings. And the growth in manufacturing remains heavily dependent on the domestic market and consumer demand in particular.

"The challenge therefore remains for the new government to take the necessary steps to revive manufacturing, boost investment spending and improve export competitiveness if any headway is to be made on achieving the long promised re-balancing of the UK economy," he added.

British gross domestic product (GDP) was estimated to have increased by 0.3 percent in the first quarter of 2015 compared with growth of 0.6 percent the fourth quarter of 2014, marking the slowest quarterly growth for two years, according to the official data. Endit