Wednesday, February 01, 2012
A good start for manufacturing
Posted by David Smith at 02:00 PM
Category: Thoughts and responses

The purchasing managers' index for manufacturing in January is strong and, in the circumstances, rather surprising. The index rose from 49.7 in December to 52.1 in January, pointing clearly to a resumption of the sector's expansion. Adding to the good news was the sharpest fall in input prices for more than two years. Maybe we wrote manufacturing off too soon.

This was Markit's verdict: "The UK manufacturing sector started 2012 on a positive footing. Output expanded at the fastest pace since last March, new orders rose following a period of contraction and payroll numbers stabilised. Cost pressures continued to ease, as average input prices fell for the third straight month."