Industry bounces back in UK

 
Julian Harris
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RECORD breaking statistics are pointing to a resurgent UK economy, according to authoritative data released yesterday.

Jobs growth in manufacturing for November raced forwards at its fastest rate since 1992, when the Markit/CPI Purchasing Managers Index (PMI) began collecting data.

And UK manufacturing growth hit a sixteen year high, after production rose for 18 months in a row.

The index increased to 58 in November, and October’s rate was revised up to 55.4. The PMI is used as an indicator of economic activity, and all figures above 50 indicate a rise.

The figures reflect stronger output growth and inflows of new work and new export orders, the authors said.

“Job creation was attributed to the ongoing economic recovery,” they added. On Monday employment forecasts were revised upwards by the Office for Budget Responsibility.

The private sector is forecast to add 1.5m jobs by 2015, with unemployment falling to around six per cent.

“Today’s survey supports our view that growth this quarter will be at least 0.5 per cent,” said Hetal Mehta of Daiwa Capital Markets.

“Any notion that the Bank of England is poised to implement more quantitative easing in the near term should now be dispelled,” she said.

Yet manufacturing only accounts for 12.8 per cent of GDP, warned Howard Archer of IHS Global Insight. “Nonetheless, this is a superb, encouraging survey,” he added. “And the more forward looking elements showed improvement.”