British manufacturing rebounds from post Brexit plunge

Sept. 1, 2016 – A survey shows that manufacturing activity in Britain rebounded in August from a slump in July, when confidence was hit by the vote to leave the European Union.

The purchasing managers’ index for the manufacturing sector, a gauge of business activity published by IHS Markit, jumped to 53.3 points from 48.8 in July. The index is on a 100-point scale, with figures above 50 representing growth.

The survey found that the plunge in the pound since Britain’s June 23 vote to leave the EU had boosted export orders, but also the costs of imported raw materials.

It found that after the initial shock in July, when companies suspended some business amid the uncertainty, “manufacturers and their clients started to regain a sense of returning to business as usual.”