Slowdown in manufacturing growth, but Yorkshire factories outperforming UK

The strong pound appears to have proved a drag on exports last month as the sector recorded a worse-than-expected reading of 55.3 for the closely-watched CIPS/Markit purchasing managers’ index survey - where the 50 mark separates growth from contraction.

It was a sharp fall from a reading of 56.2 for February.

The survey found that manufacturers continued to scale up production “at a solid clip” and economists said that while the sector had lost some steam during the first quarter, it was unlikely to herald a new slump.

Rob Dobson, senior economist at Markit, said: “Growth is merely hot rather than scorching, and the take home messages from the March survey are that the recovery remains slow and continues to drive strong job creation.”

He told The Yorkshire Post: “What we saw at the start of the year in January and February was really positive for Yorkshire factories.

“Growth of production and new orders remained robust and slightly above what we were seeing on average for the UK as a whole.

“This has been filtering through to the labour market, with Yorkshire manufacturers reporting increased hirings for the sixth month in a row.”

Across the UK, the manufacturing sector is still some way off its pre-recession peak.