Manufacturing continues to expand despite QE sting

Manufacturers are continuing to expand despite the double-edged impact of the ECB’s €1.1tn quantitative easing programme being of less advantage than is widely believed. 

The sector posted its 23rd straight monthly expansion in April with the Investec Manufacturing purchasing managers index remaining comfortably in positive territory at 55.8 despite a slight moderation on the previous month.

While quantitative easing has been broadly seen as a boon for the manufacturing sector, the double-edged sword of currency movements is impacting on the cost of imported inputs adversely as well as making output prices more competitive.