Manufacturing boosted by work from Asia, America, Europe, Ireland, Middle-East and Russia

CIPSnoble300A continuation of strong domestic demand and a welcome boost to exports on the back of better market conditions globally have helped maintain the momentum of the UK manufacturing sector.

At 56.0 in October, marginally down from a revised reading of 56.3 in September, the industry bellwether Markit/CIPS Purchasing Manager’s Index (PMI) signalled an improvement in overall operating conditions for the seventh straight month, maintaining a rate of expansion only moderately below the two-and-a-half year high registered in August.

October saw production and new orders both rise at rates above their long-run averages, leading to further job creation.

Total new orders also rose at a rate close to August’s 19-year peak, as new export business increased at the quickest clip since February 2011. Companies reported improved inflows of new work from Asia, the USA, mainland Europe, Ireland, the Middle-East and Russia.

Manufacturing employment rose for the sixth consecutive month in October, although the rate of jobs growth eased from September’s 27-month peak.

Rob Dobson, senior economist at survey compilers Markit said that despite only accounting for less than 11% of the economy, the current strength of manufacturing growth seen in manufacturing meant the sector would still provide a major boost to the economy.

CIPS CEO David Noble (pictured) said that British manufacturers had “swept into Q4 with a steady wind behind them” and the expansion in production and sales volumes in October “keeps hopes alive that there will be a solid end to the year”.

EEF chief economist Lee Hopley believed the index pointed to “a solid expansion in activity across the sector”. She continued: “Particularly encouraging is the strong showing in export demand. Manufacturers’ focus on developing new products and services to support their expansion into new export markets is making a strong contribution to this trend.”

EEF is forecasting growth to bounce back to over 2% next year.

This material is protected by copyright Ken Hurst 2013.

Advertisements

About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
This entry was posted in exports, Government/statistics, jobs, Manufacturing management and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s