Job growth in UK manufacturing fastest since 2011 as Eurozone activity eases back
The UK’s manufacturing sector saw strong growth last month, with job creation reaching a 33-month high.
Markit and CIPS’ purchasing managers’ index hit 56.9 in February, after analysts forecast 56.5.
From Markit’s release:
The strong upswing in the UK manufacturing sector was maintained during February, as levels of production and new business continued to rise at robust and above-trend rates. The solid performance of the sector again filtered through to the labour market, with jobs added at the fastest pace since May 2011.
Source: Markit
The strengthening domestic market continues to drive recovery, Markit said.
Consumer, intermediate and investment goods producers all reported robust increases in output, new orders and employment during February, suggesting that the upturn remained broad-based by sector.
Capital Economics:
The CIPS survey chimed with the upbeat tone of the timelier CBI Industrial Trends Survey in suggesting that demand for manufactured goods is continuing to pick up strongly.
Meanwhile, some modest growth was seen in Eurozone manufacturing activity in February, although the easing back from January shows how hard the economic area’s finding it to develop solid momentum across the board.
The final PMI figure came in at 53.2 for February, from January’s 54.0.
Source: Markit
Germany slid back to a (still healthy) 54.8 from 56.3 in January (a 32-month high).
The Netherlands, Austria and Ireland saw decent expansion in the industry, while France saw a near-stabilisation, following two years of contraction.
The Spanish and Italian economies saw reasonable growth too, fuelling hopes that the countries are gaining a more stable footing when it comes to recovery.
Howard Archer of IHS Global Insight:
Looking ahead, a combination of factors will hopefully allow Eurozone economic growth to gradually firm as 2014 progresses. Reduced fiscal squeezes, very accomodative monetary policy, improving global growth and sharply reduced sovereign debt concerns provide a more encouraging backdrop than the Eurozone has faced for some time.