The output and order books of the industry are growing and are at their fastest pace ever in two decades, as the UK’s manufacturing sector strongly emerges from the recession of the past few years.
The monthly Markit/Chartered Institute of Purchasing and Supply snapshot stated that the return of consumer confidence, a higher demand for new products and a more colorful outlook for exporters have helped all the factories in the UK for August.
The PMI or purchasing managers index increased to 57.2 from 54.8 in July, showing the highest level not seen in almost three years. After the 2012 struggle, there was a spurt in the manufacturing sector ever since 2013 spring, with a PMI of above 50 for the past 5 months.
The purchasing managers index is made up of several factors in the industrial sector, these include output, orders, stock levels, employment and inflationary pressure. The CIPS/Markit stated that output and orders were increasing and growing at a fast pace ever since 1994, the UK’s recovery period from deep recession.
A strong growth in manufacturing is being accompanied by an incline in price pressures, according to the report. Many companies have been reporting that they are facing rising raw materials and fuel costs, with 10.4 monthly points of input prices, which is the 2nd highest in the history of the survey.
The sector continues to grow on a 0.7% expansion rate that registered on the 2nd quarter, and this is foreseen to break the 1.0% spot during the 3rd quarter. The manufacturing sector presents a very strong and positive contribution to the nation’s economy, providing evidence that the economy is regaining balance.