The latest survey of activity in the manufacturing sector is bolstering hopes of an export-led economic recovery.
The survey results, released by the Chartered Institute of Purchasing & Supply (CIPS), showed the sector’s strongest performance for 16 years in December, which was boosted by strong orders for British goods from abroad.
Rob Dobson, senior economist at Markit and author of the survey, was unsurprisingly chipper at the results. He said:
‘The latest data are consistent with manufacturing production rising at a quarterly rate close to 2%, which should generate a meaningful contribution from the sector to economic growth in the fourth quarter to offset likely weakness in other sectors.’
The other positive from the survey is the creation of new manufacturing jobs for the ninth consecutive month - albeit just below November's record rate. However, there were warnings from that further price rises would be passed on in the future.