UK’s factories bounce back
MANUFACTURING output jumped in January, taking the UK out of the stagnation experienced in December, purchasing managers’ index (PMI) figures from Markit showed yesterday.
Output rose, registering a PMI of 52.1, up from 49.7 in December and hitting its highest level since May 2011, with new orders at their highest since March.
Any figure above 50 represents expansion.
Manufacturers reported that some UK clients were increasingly willing to spend in the month, and new export orders also increased.
January saw the second consecutive monthly rise in orders, with increased demand from non-Eurozone countries, chiefly Brazil, China, the Middle East and the US.
The growth spurt saw small and medium sized firms increase hiring, though larger manufacturers remain concerned over the ongoing Eurozone crisis and the impact it may have on sales.
“The rise in this index, if confirmed in other readings in the coming weeks and months, hints that the UK may escape a renewed recession,” said Citi analyst Michael Saunders.