Contractors trading in the manufacturing industry will be pleased to hear that the sector is currently experiencing a significant boost.
The Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) revealed that May saw the manufacturing sector maintain one of its brightest spells of output and new order growth in the 22-year survey history.
As manufacturers increased production in order to meet demand, this has had a positive effect on the wider economy through solid job creation and rising levels of input purchasing.
Manufacturing production increased for the fifteenth successive month in May, reflecting improved order books and stronger economic conditions; new export orders rose for the fourteenth consecutive month, with companies reported improved demand from the US, Asia, Canada, Europe, the Middle East and New Zealand.
It was also found that manufacturing employment increased for the thirteenth month running. Jobs growth was broad- based across consumer, intermediate and investment goods producers and at small and large companies.
Rob Dobson, Senior Economist at survey compilers Markit, commented, “The revival of UK manufacturing continued in May, as the sector basked in one of its brightest growth spells of the past two decades. Manufacturing production is currently expanding at a quarterly rate close to 1.5%, according to the PMI, helping the sector take huge strides towards recouping the output lost during the recession. However, with manufacturing still some 7.5% smaller than its pre- crisis peak, even at this current growth rate it would take until late-2015 to achieve full recovery.
“Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical. On those scores the latest survey provides some real positives.”
David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, added, “British manufacturers march onwards to mirror last month’s strong performance. Growth of new business and export orders remained strong in May, and firms are ramping up production to meet this demand. As a result, and in line with robust economic conditions, it can be said, that we’re starting to see real evidence of a sustained recovery for the sector.”
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