The purchasing managers’ index for October, based on a survey conducted by HIS Markit, indicates continuing growth in the UK manufacturing sector. In addition, increased confidence and the fact that manufacturers have recently been hiring staff at their fastest rate in more than three years reveals increasing optimism in the sector. For more detail please read the article below which appeared in The Daily Telegraph today.
Roger Mundy, Managing Director, Beardsley Theobalds, 2nd November 2017
Manufacturing growth accelerates
Britain’s manufacturers are increasingly optimistic that the economy is in recovery mode, hiring staff at their fastest rate in more than three years to ramp up production.
Growth accelerated in the sector as new orders picked up and exports kept growing. The purchasing managers’ index – an influential survey compiled by IHS Markit – rose to 56.3 for October, up from 56.0 in September and beating expectations that it would slip a touch to 55.9.
Any score of above 50 indicates growth, so this improvement shows the sector accelerating.
“UK manufacturing made an impressive start to the final quarter of 2017 as increased inflows of new work encouraged firms to ramp up production once again,” said Rob Dobson from IHS Markit. “The sector looks to be achieving a quarterly rate of expansion close to 1pc, therefore sustaining the solid pace of growth signalled by the official ONS estimate for the third quarter.”
More than 50pc of firms say they believe output will be higher in one year’s time, while only 8pc anticipate lower production levels.