British PMIs Depict Lessening Weakness

May 6, 2009

The U.K. PMIs bottomed in November but remain below a reading of 50.  This suggests more quarters of negative growth but not quite as much so as the 7.4% annualized decrease of GDP last quarter.  Britain’s manufacturing PMI printed in April at 42.9, 3.4 points higher than in March, 6.2 points greater than its first-quarter average, and 8.4 points better than last November.  The services PMI, reported today, was 48.7, 3.2 points above the score in March, 5.0 points greater than the 1Q09 mean, and 8.6 points higher than last November.  The table below compares the April readings to those in November and to the quarterly averages over the past four quarters.

  Manufacturing Services Their Sum
April 42.9 48.7 91.6
November 34.5 40.1 74.6
1Q09 36.7 43.7 80.4
4Q08 36.7 40.9 77.6
3Q08 42.4 45.9 88.3
2Q08 48.7 49.1 97.8

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without permission.



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