India Exceeds the UK in Manufacturing Growth
India Exceeds the UK in Manufacturing Growth

There can be some future concern for the manufacturing sector of the UK. Amid the fear of political turmoil in Arab nations, the manufacturing purchasing index dropped to 57.1 from a reading of 61 in February.

Many analysts attribute this slowdown in the manufacturing activity to the uncertainty looming over the Japanese economy and the potential threats of the UN sanctions in Libya and many other neighboring countries.

Responding to the slow pace of the manufacturing sector, Rob Dobson, an Economist at Markit, the polling company that produces the report, claimed, “The big question is therefore whether the drop in order-book growth represents a gathering in momentum of a more worrying slowdown which, alongside rising inflationary pressures, raises the risk of stagflation”.

Contrary to the UK, India and China showed a consolidated performance on the Purchasing Managers’ Index (PMI). Further, the report confirmed about the rising consumer demand amidst rising inflation and other global factors.

Moreover, the exports reached at $23.6 billion in February, an increase of 49.7% and Imports gained to notch up at $31.7 billion, an increase of 21.2 %. With consumer demand at a rise, many analysts believe that economic growth is not a major confirm for India in a long run.

Though the manufacturing sector got a jolt during the downturn, this was the only economic sector which outplayed the economic distress to recover fully.

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