Tuesday, January 04, 2011
Manufacturing still going strong
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

On the day VAT went up to 20%, contributing to sky-high petrol and diesel prices, a bit of good news was needed. It was duly provided by the purchasing managers' index for manufacturing in December, which rose from 57.5 to a new 16-year high of 58.3. Output and orders rose at their strongest rate since May and employment growth was similar to November's record high. There was a reminder, however, of inflationary pressures, with industry's input costs also rising at a record pace. The Markit survey can be accessed here.

Also released, Bank of England lending data, including lending to individuals. Mortgage approvals ticked up to 48,019 in November, from 47,315 in October, suggesting there is a bit of life in the housing market yet. More here.