Manufacturing’s upturn creating 5000 jobs a month

CIPSnoble300The month’s first data on the state of UK manufacturing shows the sector moving further into positive territory with orders, exports and job prospects all on the up.

The bellwether Markit/CIPS Purchasing Manager’s Index (PMI) moved still further away from the neutral 50.0  benchmark that signifies stagnation by continuing its eight month upward momentum, reaching a buoyant 58.4 in November, up from 56.5 in October.

The data also registered the fastest job creation since May 2011 while production and new order growth hit 19-year highs.

The upturn was broad-based, with all of the sub-sectors covered by the survey reporting increases in output and new business. The domestic market remained the prime pillar of new order growth but companies also benefited from rising levels of new export orders. Although the rate of growth in overseas demand was less marked than October’s 32-month high, it was still among the steepest registered post the global financial crisis. There were reports of improved inflows of new work from Asia, the USA, Germany, France, Ireland, Belgium and the Middle East.

Rob Dobson, senior economist at survey compilers Markit said the rise in manufacturing employment signalled that that companies were creating around five thousand jobs per month. Manufacturing and the wider economy were both on course to build on the third quarter’s solid foundation, he added.

CIPS CEO David Noble (pictured) believed that Improved confidence and positive macro-economic conditions, both in the UK and abroad, completed a positive outlook as the year drew to a close. While conceding that “supply chains still have some catching up to do with the market” he added, “suppliers go into the New Year with more opportunities than the challenges of previous years.”

Rachel Pettigrew, Senior Economist at the manufacturers’ organisation EEF, said the data suggested sustained strong manufacturing growth in the final three months of this year. She added that “while we expect to see a slight contraction in output overall in 2013, the year ahead should see the manufacturing sector outpace growth in the wider UK economy”.

Copyright Ken Hurst 2013

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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.

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