UK manufacturing activity hits record high in January

| February 1, 2011 | 0 Comments

The Chartered Institute of Purchasing and Supply (CIPS)/Markit manufacturing purchasing managers’ index (PMI) has today revealed UK manufacturing activity surged at a record pace in January.

The closely-watched CIPS/Markit manufacturing PMI jumped to 62.0 in January from December’s upwardly revised reading of 58.7.

Not only was the reading the highest since records began in 1992, it was well above forecasts of 57.9.

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

In addition, employment increased for the tenth consecutive month in January, while new orders were also up.

The figures will be a welcome boost for the economy after figures last week revealed the UK economy contracted by 0.5% in the October to December period.

The figures shocked economists who had expected growth of 0.5%.

However, today’s data suggests the manufacturing sector is experiencing strong growth but will raise expectations that interest rates will have to be lifted in the short-term.

Manufacturing accounts for around 13% of economic output.

Meanwhile, construction activity and service sector activity figures will be published later this week.

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