The latest Purchasing Managers’ Index (PMI) has shown the UK manufacturing sector’s index rose to its highest point in eight months.
The index score for January rose to 52.1, the highest since March 2011. The index is up from 49.7 in December.
The PMI, from Markit and The Chartered Institute of Purchasing & Supply (CIPS) measures growth and contraction in the manufacturing sector. Any index above 50 shows monthly growth, while below 50 denotes contraction to the market. A score of 50 shows no change.
The index may cause some optimism for manufacturing engineers as the New Year begins on a positive note.
The growth can be attributed to a continued demand overseas as orders from Brazil, China and the Middle East grew for consecutive months.
Markit’s senior economist, Rob Dobson says 2012 is looking healthier than the beginning of 2011.
“January saw manufacturing kick-start back into life, with output expanding at the fastest pace since March 2011 and new orders rising for the first time in seven months. Growth is nowhere near the surging highs of 12 months ago, but this is nonetheless a vast improvement on the 0.9% reduction in output seen at the end of last year.”
However, CIPS chief executive officer says it is too early to say whether there will be a period of continued growth for the manufacturing sector.
“The UK manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom, but it is too early to say whether this trend is sustainable.”
Manufacturing engineers will no doubt look at this as a possible turning point after months of contraction, but they may have to observe to find if any optimism for 2012 is well placed