Tuesday, March 01, 2011
Manufacturing doing very nicely
Posted by David Smith at 04:00 PM
Category: Thoughts and responses

After years in the doghouse, Britain's manufacturing sector is doing well, on the back of global economic revival and a competitive pound (a pity about our demand for imports). The latest composite purchasing managers' index, 61.5 (the same as in January) is consistent with manufacturing growth of 10% a year, according to Goldman Sachs. The eurozone manufacturing PMI was also strong, at 59.0.

This was the take of Markit, which produces the numbers:

"The UK manufacturing sector continued its strong start to the year in February. Rates of growth in output and new orders were only slightly less marked than January’s sixteen-and-a-half year peaks, leading to a further series record increase in employment. Manufacturers also benefited from stronger inflows of new export business. Cost inflationary pressures continued to build, however, as input prices rose at a near record high rate."