by Calculated Risk on 8/03/2009 08:56:00 AM

From The Times: UK manufacturing 'pulls out of nosedive' in July

British manufacturing grew for the first time in 16 months during July ...

According to the Chartered Institute of Purchasing & Supply (CIPS), the Purchasing Managers Index, which measures activity in the manufacturing sector, rose from a reading of 47.4 to 50.8 between June and July.

It is the first time the measure has risen above 50, the dividing line between contraction and growth, since March 2008.

David Noble, chief executive of CIPS said: "The manufacturing sector has clearly pulled out of the nosedive it was in earlier this year and is no longer plummeting.”

He said customers had cut inventories so severely in the downturn that they were now in need of new stock ...

The end of cliff diving isn't the same as new growth.

In the U.S., the ISM Manufacturing Index for July will be released this morning, and also July vehicle sales - with sales probably above 10 million units SAAR for the first time this year.

Construction spending for June will also be released this morning.