UK manufacturing hits 30-month high

PMI for the sector rose to 56.1 last month, up from 53.6 the month before. Any figure above 50 indicates growth.

Manufacturers have benefited from inflows of new work from domestic and international clients, the survey shows.

The latter was aided by the boost to competitiveness from a weakened pound.

Jobs also rose for the fifth consecutive month, with SMEs witnessing the largest growth.

David Noble, group CEO at CIPS said: “Manufacturers enjoyed the stronger economic environment and consequently raised production at a robust pace, while finding room to increase purchasing activity at the strongest rate for two and a half years.”

However, manufacturing costs remained high in December, the index reveals. For example, oil prices have steadily increased over the last few months and now sit at roughly $57 boe.

“The impact of rising input costs continued to be felt, as the rate of cost inflation stood at one of the highest in the survey’s 25-year history. However, this did not deter manufacturers from leveraging their buying capability and increasing their input orders – the fifth month in succession,” Noble said.