UK manufacturing finishes 2016 on a 30 month high

11244444
11244444

The UK manufacturing industry finished 2016 on a high note after the sector hit a two and a half year high in December 2016, according to The Markit/CIPS purchasing managers' index (PMI).

The index rose to 56.1 in December from 53.6 in November. A figure above 50 indicates growth whereas a figure below signals market contraction. This figure also beat a prediction of 53.1 by economists in a Reuters poll.

The survey found the sector started 2017 on a “strong footing” with a weaker pound boosting overseas orders.

Rob Dobson, senior economist at IHS Markit, commented: "Based on its historical relationship against official manufacturing output data, the survey is signalling a quarterly pace of growth approaching 1.5%, a surprisingly robust pace given the lacklustre start to the year and the uncertainty surrounding the EU referendum.

"The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround, while the domestic market has remained a strong contributor to new business wins."

Mr Dobson added: “A plus point from the December survey was that the expansion was led by the investment and intermediate goods sectors, suggesting capital spending and corporate demand took the reins from the consumer in driving industrial growth forward.”

Markit www.markit.com

CIPS www.cips.org

Company

CIPS

Related Articles
Most recent Articles

Citizen Machinery appoints new sales engineer

With 25 years' experience working in the machine tool sector, Eric Tollett has been appointed by Citizen Machinery UK as area sales engineer for territories in north-east England, where he will be responsible for sales of the company's Cincom sliding-head and Miyano fixed-head lathes and related automation solutions.
16 hours ago News

MoU signed for net zero combustion engines

MAHLE Powertrain and Clean Air Power have signed a Memorandum of Understanding (MoU) to combine their efforts in providing rapid and cost-effective solutions for net-zero fuelled internal combustion engines.
2 days ago News

Login / Sign up