INDUSTRYNEWS
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UK manufacturing recovery
retains momentum
The manufacturing recovery remained
on track at the end of 2013, as rates
of expansion in production and
new orders were among the highest
in the 22-year history of the UK
manufacturing PMI.
Job creation was close to November’s
two-and-a-half year record as firms
benefited from stronger domestic market
conditions, the index from Markit/CIPS
revealed.
Output rose for the ninth successive
month in December, fuelled by an
increase in new work and efforts to clear
backlogged work.
Rob Dobson, senior economist
at survey compilers Markit: “UK
manufacturing’s strong upsurge
continued at the end of 2013, with rates
of growth in production and new orders
still among the highest in the 22-year
PMI survey history. On its current track,
the sector should achieve output growth
of over 1% in the final quarter while
‘The domestic market
remains resurgent with
higher new order inflows’
filling around 10-15 thousand jobs,
continuing its positive contributions to
both the broader economic and labour
market recoveries.
“The domestic market remains
resurgent and is a major factor driving
production and new order inflows
higher. UK exporters are also finding
pockets of strength, with sales of capital
and intermediate goods rising solidly
to destinations such as Brazil, China,
Ireland, Russia and the USA.
“With the manufacturing sector
still some 9% off its pre-crisis peak
production, the question everyone
wants answering is whether this upturn
can develop into a self-sustaining
recovery. The news is still good on
this score, as growth is coming from a
broad base that should help keep the
rebound on track during the early stages
of 2014.
“Output and new orders are rising
across all manufacturing sub-sectors and
also at SMEs and large-scale producers.
The strong performance of intermediate
goods manufacturers suggests that
firms are refilling their warehouses,
while robust growth at consumer and
capital goods producers indicates ]