Manufacturing begins 2012 with rapid expansion

 

Manufacturers started 2012 on the front foot after figures today showed the sector expanded at the fastest pace since last March.

The better-than-expected purchasing managers' survey by Markit/CIPS showed an overall reading of 52.1, higher than the 49.7 recorded for the previous month. A figure above 50 indicates growth in the sector.

The overall economy contracted by an estimated 0.2% in the fourth quarter of 2011 but today's figures will fuel hopes that the UK's expected return to recession during the current quarter will be mild.

CIPS said output growth was at a 10-month high, while there was further cheer for the wider economy after it emerged factory bosses saw costs fall at the fastest pace since mid-2009.

Manufacturers reported lower costs for commodities, metals, packaging, paper, plastics and timber.

CIPS chief executive David Noble said: “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.”

The organisation said foreign orders rose for the second month running in January amid reports of improved demand from clients in Brazil, China, the Middle East and the United States.

Mr Noble added: “In the long-term, it's looking like businesses will need to refocus on emerging growth markets outside the weaker eurozone to achieve sustainable growth.”

Employment in the manufacturing sector was broadly unchanged in January, with the improvement in payroll numbers in small and medium-sized enterprises offset by cuts implemented at large-sized companies.

Samuel Tombs, an economist at Capital Economics, said the survey increased the chances that the overall economy returned to growth in the first quarter.

However, he added: "With only one month of the quarter having passed and the headwinds from the eurozone likely to intensify, it is far too early to say that the economy has avoided a renewed recession."

PA

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Installation Manager

£35000 Per Annum: The Green Recruitment Company: The Green Recruitment Company...

Tax Investigations Manager/Senior Manager

£60000 - £70000 per annum + Benefits: Cameron Kennedy Recruitment: This rapidl...

Scrum Master - Southampton, Hampshire - Excellent Package

£40000 - £60000 per annum + Excellent benefits: Deerfoot IT Resources Limited:...

Senior Scrum Master - Hampshire - £47k

£47000 per annum + Excellent benefits: Deerfoot IT Resources Limited: Key skil...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice