Economy: Purchasing Managers’ Index Debate
Full Debate: Read Full DebateLord Borwick
Main Page: Lord Borwick (Conservative - Excepted Hereditary)Department Debates - View all Lord Borwick's debates with the Department for International Development
(5 years, 4 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of the Purchasing Managers’ Index figure of 55.1 for the United Kingdom published on 1 April and the comparative performance in Germany.
My Lords, declaring my interests in the register as a manufacturer, I beg leave to ask the Question standing in my name on the Order Paper.
My Lords, the manufacturing purchasing managers’ index stands at 55.1, and has been above 50—indicating an expansion in activity—for 32 consecutive months, supported recently in part by strength in inventory accumulation. Meanwhile, the comparable reading for Germany has fallen into contractionary territory in 2019 at 44.1.
I thank my noble friend for his Answer and agree that many small companies are doing very well indeed. The PMI, which is a forward-looking index, backs up the excellent GDP and Treasury figures to suggest that the UK economy is thriving. There are always economists who practise the dismal science and who will predict doom and search for a dark cloud wherever they find a silver lining. Does my noble friend have any other ideas to cheer them up?
I am sure that those who forecast a figure of zero for GDP in February and then found out it was 0.2% might be a little cheered up this morning. On other reasons to be cheerful, what about the fact that unemployment, debt and taxes are all falling while exports, growth, GDP and real wages are all rising?