Robust rise in manufacturing confidence
The latest composite figure for the manufacturing Markit/CIPS Purchasing Managers’ Index showed a rise despite fears for the health of the UK economy.
The latest composite figure for the manufacturing Markit/CIPS Purchasing Managers’ Index showed a rise despite fears for the health of the UK economy.
The Purchasing Managers’ Index posted a reading of 54.9, up from last month’s 53.4.
The report highlighted faster growth in exports and new orders, with staffing levels also improving.
David Noble, CEO of The Chartered Institute of Purchasing & Supply said: “Exports are very much the engine of growth within manufacturing at the moment. While it is very positive to see the sector expanding strongly again, it’s difficult to predict the impact of fluctuations in export markets so the recovery may continue to be bumpy. What is clear is that manufacturing looks set to drive further GDP growth in Q4.
“New orders are providing manufacturing purchasers with a mandate to increase activity and hire new staff, but inevitably, there will be hard graft ahead as pressure on supply chains remains a big concern. The increased buying activity happening now is calculated to replace depleted stock and avoid expected input price increases, which are already being passed on to customers.”
UK manufacturing expanded for a fifth month in September to reach the strongest level in almost two years as the economic recovery sustained its momentum.
Output climbed 0.1 percent from the previous month, the Office for National Statistics said.
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