Good news for Manufacturers
02-02-2011
The UK manufacturing sector has accelerated in growth in January giving the economy a much needed boost.
The survey was carried out by The Chartered Institute of Purchasing and Supply who welcomed the growth which is the fastest monthly pace since comparable records began in 1992. The survey showed an increase in industrial activity from 58.7 in December to 62 in January. Any reading above 50 indicates growth and below 50 signals contraction.
The survey also revealed an increase in manufacturing employment and new orders which also helps boost the economy. However the cost of manufacturing companies buying raw material has also increased. More than three-fifths of manufacturers reported a rise in their input costs in the last month.
Construction figures also improved in all three sub-sectors, house building, civil and commercial first time since August.
Manufacturing was almost the only part of the UK plc to have improved in the final three months of 2010 with a growth of 1.4%. There was a 0.5% decline in overall gross domestic product.
As the manufacturing industry accounts for almost 13% of the economy, this came as great news. It signifies the importance of a successful economy in the UK.
