Britain's manufacturing sector contracted at its slowest pace in 8 months in April, as the weak pound helped support new orders, a survey showed this morning.
The CIPS/Markit manufacturing purchasing managers' index improved to 42.9 in April from an upwardly revised 39.5 in March.
Analysts had expected a more modest improvement to 40.
The headline index is the highest since last August, although it has been below the 50 level which separates expansion from contraction for more than a year.
The survey showed an improvement in most of the 11 sub-indices, with new orders and export orders showing particularly big increases.
The new orders index rose to 46.3 in April from an upwardly revised 39.4 in March - the biggest jump in the index since 1996 and marking the slowest rate of contraction since last April.
The export orders index rose to its highest since last March at a whisker below 50 in its biggest increase since CIPS started polling for this information in 1996.
“The sterling exchange rate was the main factor boosting competitiveness abroad,” the survey said.
The pound has lost nearly a third of its value against other major currencies over the last 18 months and policymakers have been counting on exports to help lift Britain out of recession.
Reuters