Tuesday, May 04, 2010
Manufacturing maintaining strong growth
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

Everybody knows the UK has to rebalance, and that includes a stronger performance from manufacturing, which was hit hard in the recession. The latest Chartered Institute of Supply/Markit purchasing managers' index for the sector suggests so far, so good. in April the index rose from 57.3 to 58, its highest level for more than 15 years. Output, new orders (particularly export orders) and employment were all up strongly.

According to Rob Dobson, senior economist at Markit, which produces the data:
“Manufacturers reported a flying start to the second quarter, with the weak pound boosting export growth to the fastest for at least 15 years. The data point to manufacturing output growing by as much as 2% in the latest three months, suggesting the sector will provide a strong contribution to second quarter gross domestic product.

“The sheer strength of the rebound in demand for manufactured goods is highlighted by an unprecedented increase in backlogs of work, the largest for at least 11 years, which in turn has encouraged manufacturers to raise staffing levels to the greatest extent for three years."