UK manufacturing growth at 10-month high in March
Published: 2nd Apr 2012 10:59:57
The UK's manufacturing sector grew at its fastest pace for 10 months in March, a survey has indicated.
The Markit/CIPS Purchasing Managers' Index (PMI) for manufacturing rose to 52.1 last month from 51.5 in February. A reading above 50 implies growth.
The data is an encouraging sign that the UK economy grew in the first three months of 2012 and avoided a recession.
But while there was a pick-up in new orders, March output was also boosted by clearing backlogs of existing work.
Markit said that conditions in the sector remained tough, with firms facing high oil and metal prices.
But it said that both domestic and overseas demand had improved.
"UK manufacturing has made a brighter than expected start to 2012, with PMI data pointing to output growth of around 0.3% in the first quarter," Rob Dobson, senior economist at Markit, said.
"This is obviously nowhere near a strong pace, but it is at least sufficient to prevent the sector from remaining a drag on broader GDP growth.
"Inflows of domestic and export orders also showed some improvement in March, but exporters are having to tap markets further afield as conditions in the eurozone remain lethargic."
New orders rose at their quickest pace for a year in March, the data showed.
In another encouraging sign, the PMI for February was also revised upwards to 51.5 from a previously-stated 51.2.
Peter Dixon at Commerzbank said the figures indicated that the manufacturing sector performed reasonably strongly in the first quarter, "which interestingly is not being confirmed so far by the ONS's official numbers".
"We'll wait and see what the services figures look like later in the week, but I still suspect that these are consistent with a GDP growth rate of somewhere in the region of 0.2%," he said.
"It would therefore break the cycle that was represented by the sharp decline in Q4."
The service sector PMI figures will be released on Wednesday.
The manufacturing survey indicated output growth of 0.3% in the first quarter of 2012 after a 0.7% decline in the fourth quarter of last year.
That contributed to the overall economy contracting 0.3% in the last three months of 2011.
At 08:59:40 in HeadlinesThe Sri Lankan authorities have ordered the deportation of a British tourist because she had a Buddha tattoo on her arm. Here are some other ways tattoos can get you into trouble, writes Vanessa Barford.
At 08:58:07 in HeadlinesArmed pirates have raided a Japanese oil tanker sailing in the Malacca Straits and abducted three crew members, officials in Malaysia say.
At 08:58:04 in EnglandA gunman is being hunted in Dorset after attempting to rob a bookmakers.
At 08:50:32 in SportSir Alex Ferguson will play a key role in selecting David Moyes's replacement as Manchester United manager.
At 08:46:39 in EnglandA husband and wife have appeared in court to deny charges relating to the killing of a traveller at his caravan in Hertfordshire.
At 08:38:39 in EnglandPensioners in Sussex donated £24,000 of their heating allowance to charity over the course of the winter.
At 08:18:50 in Northern IrelandFlybe is to offer flights from London after signing a five-year deal with London City Airport.
At 08:17:29 in SportAlan McManus toppled former world champion John Higgins then hit out at young players who spend too much time on the internet to stay at the top.
At 08:16:39 in Northern IrelandPolice have been called to an estate in Cork following a dispute over the installation of water meters.
At 08:01:49 in BusinessClothing retailer Primark is to open its first US stores, beginning with a 70,000 sq-ft shop in Boston in Massachusetts.
Harvard CitationBBC News, 2012. UK manufacturing growth at 10-month high in March [Online] (Updated 2nd Apr 2012)
Available at: http://www.ukwirednews.com/news/1420107/UK-manufacturing-growth-at-10-month-high-in-March [Accessed 23rd Apr 2014]
News In Other Categories
Flybe is to offer flights from London after signing a five-year deal with London City Airport.
Legendary rock group Led Zeppelin have released two previously unheard recordings ahead of the reissue of the band's first three albums in June.
Armed pirates have raided a Japanese oil tanker sailing in the Malacca Straits and abducted three crew members, officials in Malaysia say.
Eight major renewable energy projects, expected to support 8,500 jobs, have been given government approval.
A gunman is being hunted in Dorset after attempting to rob a bookmakers.
Sir Alex Ferguson will play a key role in selecting David Moyes's replacement as Manchester United manager.