UK Manufacturing Increased Last Month

The rate of manufacturing in the UK grew faster than expected in the month of February, new statistics have revealed.

According to the Markit/CIPS Manufacturing Purchasing Managers' Index (PMI), employment within the sector is now expanding at its fastest rate in almost three years.

Last month, the Index reached 56.9, up from 56.6 in January and was higher than the figure expected by economists (56.5).

A figure above 50 indicated expansion within the sector. Currently, manufacturing accounts for around a tenth of of Britain's economy.

Elsewhere, the pace of jobs growth reached a 33-month high in February, as the improved performance of the sector encouraged companies to take on more staff. Also underpinning the rise in employment were signs of strain on the capacity of some firms, as highlighted by a slight gain in backlogs of work during the month.

Commenting on the findings, Rob Dobson, Senior Economist at Markit, said: "The survey suggests we should expect another quarter of robust economic growth in the opening quarter of the year. The Manufacturing PMI ticked higher in February to provide welcome reassurance that the sector has weathered the storms and flooding in parts of the country during the month.

"Growth of production and new orders lost only a little momentum and are still rising at above trend rates. This mini-renaissance in manufacturing is also driving the sharpest job creation since the middle of 2011, which will support the broader economic recovery through improved consumer confidence and spending."

David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply added: "UK manufacturing remains remarkably resilient in February, with employment levels speeding ahead. Driving the trend of recovery this month was the rate of increase in staffing levels, which reached a 33-month high.

"Increasing levels of production, new orders amongst the steepest in the survey's history and positive expectations, helped sustain this solid growth and are encouraging signs for the next few months."

(JP)