UK manufacturing activity picks up pace in October

| November 1, 2010 | 0 Comments

The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing activity unexpectedly grew in October.

The closely-watched CIPS/Markit manufacturing PMI rose to 54.9 in October from 53.5 the previous month.

Not only was the reading the highest since July, it surprised economists who had expected a fall to 53.1.

Furthermore, the index continues to stay above the crucial 50 mark, which indicates expansion.

Commenting on the figures, Rob Dobson, Senior Economist at Markit, said: “Manufacturing remained a driver of UK economic growth at the start of the final quarter.”

Following the announcement, the pound rose against the US dollar to 1.6080, rising 0.24%.

Today’s figures will provide a boost to the economy and suggest that growth is not slowing as much as anticipated.

Last week, the Office for National Statistics revealed UK economic growth for the third quarter slowed to 0.8%, albeit double the rate analysts had forecast.

Both sets of figures will reduce the chance of more quantitative easing (QE) from the Bank of England in the short-term.

Some have been calling for an injection of £50 billion via the Bank’s QE programme to boost the economy but recent data may mean the Bank will hold off for the short-term.

Tags: , , , , , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 1459 times, 2 so far today