Output also grew, while new orders also increased

Mon, 4 Jan 2010

UK manufacturing employment declined for the 20th consecutive month in December but the rate of reduction was the weakest since May 2008.

Rob Dobson, senior economist at Markit Economics, says: “December PMI data signals a positive end to a tumultuous year for UK manufacturers. The latest release sees the headline PMI rising to its highest level for over two years following robust growth in both production and new orders. The consumer and intermediate sectors are faring well, so is domestic demand, but lacklustre capital spending and subdued export performance are proving to be a drag on the industry as a whole.

“The outlook is somewhat clouded given the uncertainty of the timing of fiscal and monetary stimuli withdrawal but the momentum and broad-base of the recovery should hopefully aid sustainability.”