Surprise boost in manufacturing industry lifts hopes for growth

An unexpected bounce in the UK’s manufacturing sector has raised hopes the industry could end the year on a high.
By The Newsroom
Published 2nd Nov 2015, 15:22 BST
(Picture: Owen Humphreys/PA Wire)(Picture: Owen Humphreys/PA Wire)
(Picture: Owen Humphreys/PA Wire)

October’s Markit/CIPS purchasing managers’ index (PMI) jumped from 51.8 September to 55.5 - a 16-month high.

The survey noted sharp growth in both output and new orders last month. Exports, particularly to clients in the US and the Middle East, also boosted the sector.

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Other territories also saw stronger manufacturing performance last month, with the US PMI at a six-month high of 54.1. The Eurozone saw more modest growth, up to 52.3 from 52 in September.

China’s manufacturing sector remained weakened, but saw an upswing of 1.1 points to 48.3. A reading of 50 or above indicates growth.

Andy Tuscher, regional director at trade body EEF, told The Yorkshire Post that the “remarkable” boost in headline PMI gives hope for Yorkshire and the Humber’s growth, which slowed to a 31-month low in September.

He said: “This is the first positive survey for manufacturing for some months and if this translates into an improvement in the official data, the sector could still post growth this year.”

Kate Darlison, partner and manufacturing lead at Deloitte in Yorkshire, added that “cost reduction, innovation and talent” will help the “resilient” sector thrive.

Related topics:YorkshireChina