UK manufacturing at 15-month high in December
03 Jan 2013
The UK manufacturing sector rose to a 15-month high in December, suggesting a halt to further contraction in the economy.
The latest Markit / CIPS purchasing managers' index (PMI) stood at 51.4, rising above the 50 mark, which signaled expansion, for the first time since March 2012.
It was also the highest reading since September 2011, on demand from domestic customers which offset the ongoing dip in orders from the troubled eurozone.
Although there was possibility of contraction in manufacturing in the fourth quarter, many economists believed the sector was now stabilising, which might further improve the performance of the wider economy.
Glasgow-based Herald Scotland newspaper quoted Howard Archer from IHS Global Insight as saying the marked pick-up in manufacturing activity in December was a significant boost to hopes the economy was at least flat in the fourth quarter and could even have even registered marginal growth.
He added, while the purchasing managers' survey offered real grounds for hope for manufacturers as they head into 2013, it was evident the sector still faced tough domestic and global conditions.
