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UK manufacturing activity picks up

Written By blogger on Monday, December 1, 2014 | 3:20 AM

UK manufacturing activity increased in November after solid domestic demand offset weaker orders from overseas markets, a survey has indicated.

The Markit/CIPS Purchasing Managers' Index rose to 53.5 from 53.3 in October. A figure above 50 implies that the sector is growing.

The reading was the highest for four months and adds to the picture of a stronger economy.

The rate of job creation reached a four-month high, the survey found.

"In the lead-up to the chancellor's Autumn Statement, the November PMI survey shows the UK manufacturing sector continuing its solid expansion," said Rob Dobson, senior economist at Markit.

"Despite easing from the stellar pace set in the first half of the year, growth is still coming from a broad-base that will aid its sustainability."

Chancellor George Osborne has warned that the UK is being affected by weakening economies in the eurozone and elsewhere.

Monday's survey showed manufacturing exports were still falling, notably to the European Union and Russia. A weaker euro was adding to this.

Mr Dobson added that a lower oil price, currently at four-year lows, meant inflationary pressures were also easing and that this "will continue to provide some leeway for the Bank of England to hold off from raising [interest] rates even as solid growth persists".


UK manufacturing activity picks up

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