PMI reveals growth upturn

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UK manufacturing growth accelerated for the first time in seven months in October, the latest Markit/CIPS Purchasing Managers Index reveals.

“Output rose in response to faster inflows of new business and a solid increase in new export orders. However, supply-side constraints and expected future input price increases led to a marked rise in purchasing and survey record growth in raw material stocks,” it said.

The PMI rose to 54.9 in October from September’s ten-month low of 53.5. The PMI has now remained above the neutral 50.0 mark for fifteen successive months.

David Noble, chief executive at the Chartered Institute of Purchasing & Supply, said: “Exports are very much the engine of growth within manufacturing at the moment. While it is very positive to see the sector expanding strongly again, it’s difficult to predict the impact of fluctuations in export markets so the recovery may continue to be bumpy. What is clear is that manufacturing looks set to drive further GDP growth in Q4.”

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