Manufacturing employment accelerates

The Markit/Chartered Institute of Purchasing and Supply (CIPS) Purchase Manager’s Index (PMI) revealed that in February job creation hit a 33-month record.

This helped drive overall growth of the sector: on a scale where 50 is equal to no change, the seasonally-adjusted PMI recorded a reading of 56.9 in February, up from a reading of 56.6 in January.

[These] are encouraging signs for the next few months

CIPS chief executive David Noble

“UK manufacturing remained remarkably resilient in February, with employment levels speeding ahead,” said CIPS chief executive David Noble.

“Driving the trend of recovery [last] month was the rate of increase in staffing levels, which reached a 33-month high. Increasing levels of production, new orders amongst the steepest in the survey’s history and positive expectations, helped sustain this solid growth and are encouraging signs for the next few months.”

Strengthening domestic demand remained the primary driver of the manufacturing recovery that continued in February, underpinning an eleventh successive monthly rise in production volumes. Companies surveyed also linked higher output to promotional activity, new product launches and investment in new machinery.

New export business also posted a solid gain in February. However, the rate of increase eased from January’s near three-year record. Manufacturers reported improved inflows of new work from clients in Europe, the US, China, the Middle East and Africa.

Also underpinning the rise in employment were signs of strain on the capacity of some firms, as highlighted by a slight gain in backlogs of work during the month.