DAVY VIEW

This morning’s manufacturing PMI at 48.6 in April shows the sharpest decline in output since November, the sector being affected by the broader downturn in Europe. However, firms are still upbeat on future prospects, with employment rising for a fifth consecutive month. Also, spare capacity is growing and supply-chain issues are being resolved. April saw the first decline in input prices and lead times shortened at the sharpest pace since 2009.