Exports help UK manufacturing grow

The Manufacturing PMI for October hit 56 with output and new orders both trending near recent 19-year record highs. The PMI also revealed a sharp rise in inflows of new export business to a 32-month high. Rob Dobson, senior economist at Markit, said: "The UK is no longer being left behind in the chase to benefit from improving global markets. A strengthening domestic market, riding on the crest of a wave from recent positive economic news, also remains a prime driver of the recovery. "This should help UK manufacturing remain one of the brighter growth spots in the world manufacturing economy, as highlighted by its position at the top of the global PMI rankings throughout the third quarter." The survey suggested manufacturing output is growing at a quarterly rate of around 1%-1.5%. Dobson added: "Despite only accounting for less than 11% of the economy, the current strength of growth seen in manufacturing means the sector will still provide a major boost to the economy in October, boding well for the strong pace of economic growth we saw in the second and third quarter being sustained into the fourth quarter. "The latest increase in employment also suggests that the manufacturing sector is creating jobs at a solid pace, which should help bring unemployment down in coming months. Nonetheless, manufacturing remains 9% smaller than its pre-crisis peak." The PMI is an economic indicator derived from a monthly survey of private sector companies. Index readings above 50 indicate expansion.