After what seems like a lifetime of bad news, there are some good news items relating to the British economy this week.
New manufacturing data shows that this sector grew at its strongest pace in over a year during May.
The Markit/CIPS Purchasing Managers’ Index rose to 51.3 in May from 50.2 in April.
Any figure over 50 shows that the manufacturing sector is expanding.
Both production and new orders have picked up, according to Markit. It appears to be the domestic market driving demand for new business.
We have also seen a positive outlook for the UK economy from the British Chambers of Commerce (BCC). It recently upgraded its economic growth forecasts for the UK.
The BCC expects the UK economy to grow by 0.9% in 2013, 1.9% in 2014 and 2.4% in 2015.
This is revised upwards from their previous forecasts of 0.6%, 1.7% and 2.2% respectively.
Whilst good news for the UK economy, the BCC does warn that economic growth is still too weak. The UK economy faces both domestic and overseas challenges.
These manufacturing figures and economic forecasts both suggest a good second half to the year for the British economy.
We have no doubt that, unfortunately, the press will continue to do their best to promote the more negative aspects of the outlook for the economy.
