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UK Manufacturing Index at a 16 Year High!

1 December 2010

It was announced this week when the UK purchasing managers' index for manufacturing reached a 16-year high in November as exports surged and companies added jobs at a record pace.

The index, based on a survey of manufacturing companies, reached a level of 58, up from 55.4 in October, and the highest since September 1994. A figure above 50 means indicates a increase in new business.

The survey pointed to particularly strong hiring, with employment rising at the highest rate since records began in 1992. Businesses attributed their willingness to create jobs to the continuing economic recovery.

A large growth in employment was experienced by the manufacturing sector in recent months. In fact, other official sources have shown that more than 300,000 jobs have been created in the private sector in the quarter to September 2010.

November output improved for the 18th month in succession as domestic and export orders rose. In addition, backlogs of orders increased.

The increased output has been helped by the low pound, producing more attractive prices to overseas purchasers.

Economists believe this reinforces the belief that the UK economy returned to growth in the last three months of 2009.

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