UK manufacturing growth reaches 19-year high
Britain's factories are 'booming' as PMI jumps again, fuelling hope for overall economic recovery
UK MANUFACTURING output has increased at the fastest pace in almost two decades, boosted by increased demand from Europe and America, according to a survey.
Markit and CIPS, who carried out the research, also revealed that in August the Purchasing Managers Index (PMI) for the sector jumped to 57.2 - any number above 50 indicates expansion. The reading is manufacturing's highest in two and a half years and signalled a fifth consecutive month of expansion.
The survey discovered that manufacturing, which accounts for 10pc of UK GDP, saw its output and new orders rise at their fastest rate since 1994. Factories continued to take on new staff for a fourth month running. Rob Dobson, senior economist at Markit, said that British factories were "booming".
The positive data for Britain comes alongside the news that manufacturing activity in emerging markets, such as India, Indonesia and S. Korea, had dramatically slowed.
According to the Daily Telegraph, the strong manufacturing figures demonstrate the accelerating pace of the UK recovery. IHS Global Insight's Howard Archer said: "This fuels hopes that GDP growth could even surpass the 0.7 per cent quarter-on-quarter expansion achieved in the second quarter."
The new data will increase pressure on Mark Carney to consider raising interest rates sooner than 2016, when unemployment is expected to fall to below the stated threshold of seven per cent.