UK manufacturing has another strong month in January, according to the Purchasing Manager’s Index, produced by Markit for the Chartered Institute of Purchasing and Supply.
At 62.0 in January, from an upwardly revised reading of 58.7 in December, the seasonally adjusted Markit/CIPS UK Manufacturing PMI rose to a record high. The PMI has remained above the 50.0 mark throughout the past year-and-a-half. Key points:
CIPS chief David Noble said: “The significant increase in purchasing activity shows that manufacturers are feeling confident about the future and ensuring they have sufficient stock to meet increased orders. It’s also apparent that most are looking to build up inventories and make certain that they’re not caught short in the face of raw materials shortages.”
“Manufacturers will be watching intently to see how the government and Bank of England move to tackle the issue of rising inflation, and hoping for stimulation to encourage continued growth in a sector which is currently leading the way towards UK recovery. A very different picture from last year.”
And Rob Dobson, senior economist at Markit, said: “Robust demand was supported from both the domestic and overseas markets, suggesting that what we are seeing is not just an export orientated recovery, but there are also signs of life in domestic consumer and business spending.”