Company News
UK Manufacturing Growth 'Hits 3yr High'
Monday 8th May 2017
Manufacturing growth in the UK appears to be doing well at the moment, with the latest Markit/CIPS Purchasing Managers' Index showing that it reached a three-year high of 57.3 in April, rising from the 54.2 seen in March.
The beginning of the second quarter of the year saw rates of expansion gather pace in output, new export work and total new orders, off the back of further job creation and improved business confidence. Alongside increased output growth, stocks of purchases, new orders and employment all climbed at a survey record rate as well.
Manufacturing production rose at the fastest pace for three months, driven by the strongest influx of new work since January 2014. New export business was also seen to be doing well with a solid increase, reflecting both the weak sterling exchange rate and stronger market conditions around the world.
However, higher prices for materials like plastics, metals and chemicals were mentioned by companies participating in the survey.
"While the major political parties debate how best to leave Europe, British manufacturers have continued to increase their exports to the continent. A weaker pound has kept British products competitive on the world stage and encouraged the twelfth successive rise in manufacturing exports," director of customer relationships at the Chartered Institute of Procurement & Supply (CIPS) Duncan Brock said.
Construction growth in the UK also picked up in April, off the back of hikes in civil engineering and residential building activity. Further increases in employment numbers and the strongest rise in input buying seen since November last year were underpinned by greater workloads.
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