Job creation on the up as manufacturing sector sees solid growth
(2 minutes to read)
Umbrella company contractors working within the manufacturing sector will be pleased to learn that the industry has experienced significant growth over the last month.
The latest Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI) revealed that the UK manufacturing sector experienced further solid growth of production and new orders during February and although rates of expansion slowed, they remained well above the respective long-run averages.
The ongoing upturn meant manufacturers maintained a positive outlook. Almost 50% expect output to be higher in one year’s time, compared to only 6% anticipating a decline.
This optimism resulted in further increases in employment and job creation was registered for the seventh consecutive month, with headcounts rising at SMEs and large-scale manufacturers.
Duncan Brock, Director of Customer Relationships at the Chartered Institute of Procurement & Supply, commented, “Buoyant economic conditions gave the sector a spring in its step. Levels of new business and overall activity grew for the seventh consecutive month, underpinned mainly by a strong rise in new export orders. The investment goods sector was the biggest winner with the fastest growth in production.
“As a result, manufacturers had the confidence to maintain good levels of job creation reflecting a positive mood around continuing market expansion.”
Rob Dobson, Senior Economist at IHS Markit, which compiles the survey, added, “The latest PMI signals that the UK manufacturing sector continued its solid start to the year. Although rates of expansion in output and new business lost impetus in February, growth remained comfortably above the long-run averages.”