Manufacturing survey ‘incredibly positive’

Richard Bacon
Richard Bacon

A MILTON Keynes sector specialist has welcomed new research showing that manufacturing is continuing to outperform the general economy.

The UK Manufacturing Purchasing Managers’ Index (PMI), published today (January 4) by Markit, shows output and order rising and jobs growth close to November’s record rate, with exporters leading the way.

Richard Bacon, manufacturing specialist at Barclays Corporate Milton Keynes, said: “An incredibly positive set of December PMI figures underscores the fact manufacturing continues to outperform the general UK economy, which Barclays economists now expect to grow by 2 per cent in 2011 and 2.1 per cent in 2012.

“In terms of demand for the UK’s manufactured goods, a strengthening in household consumption, net trade and investment should offset the fall in public sector demand. Business investment certainly has the potential to grow in 2011, as non-financial firms in the UK have been running substantial cash surpluses in recent quarters.

“Globally our economics team expects growth to slow moderately, to about 4.25% in 2011 from 4.9% in 2010, with the slowdown mainly the result of softening emerging world growth, particularly Asia and Latin America. Indeed, emerging market countries are set to move towards more sustainable growth after the strong rebound following the crisis, while still offering huge opportunities for UK manufacturers.”