The UK’s manufacturing sector has enjoyed its best quarter in more than three years, with a new report revealing a surge in exports, new business and job creation.
June’s manufacturing Purchasing Manager’s Index (PMI), produced by Markit and the Chartered Institute of Purchasing & Supply (CIPS), rose to 57.5 in June from 57.0 in May, reflecting the second highest reading in 40 months.
It is the PMI’s 16th consecutive month of growth and the average pace across the manufacturing sector for the second quarter of 2014 was its strongest for 20 years.
UK manufacturers also reported an influx in new business from clients in Europe, the Middle East and Asia, with companies making a further push into new markets.
David Noble, group chief executive of the CIPS, said: “The manufacturing PMI hit a seven-month peak in June, rounding off its best quarter in over three years.
“The strong domestic market supported production and was the prime source of new business and sales, although new export orders also edged higher this month. Indeed, the brightening economic conditions and new product offerings meant that there was a healthy appetite to push into new markets.”
Employment also rose for the 14th consecutive month in June, with the largest rate of job creation reports in small and medium-sized enterprises.
Rob Dobson, senior economist at Markit, added: “UK manufacturing continued to flourish in June, rounding off one of the best quarters for the sector over the past two decades.
“With levels of production surging higher, and order books swollen by a further upswing in demand from both domestic and overseas clients, job creation accelerated to its highest for over three years.”
SOURCE: Insider Media 02/07/14