UK manufacturing activity barely grew last month, raising concerns over the economy’s strength in the run-up to the June 23 referendum on whether the country should remain a member of European Union (EU).
The Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 from 49.4 in April, which had been the lowest level since early 2013.
But the PMI index was only a fraction above the 50 mark that separates manufacturing growth from contraction.
“The manufacturing sector looks likely to act as an increased drag on the economy in the second quarter,” Rob Dobson, senior economist at survey compilers Markit, said.
“There are also signs that increased client uncertainty resulting from slower growth and the forthcoming EU referendum are weighing on investment spending and business decision-making in general,” he said.
The PMI report found that more than a third of British manufacturers surveyed believed uncertainty over the EU vote has had a…