Manufacturing results "incredibly strong", says EEF Midlands
Manufacturing activity has climbed to its fastest pace since records began, according to the Purchasing Managers' Index (PMI) survey. EEF Midlands said the positive results showed the sector was "capable of drivingthe recovery forward".
The PMI survey also reveals that factory costs have increased and employment in the manufacturing sector has risen at its quickest pace since 1992.
The Markit/CIPS manufacturing PMI increased to 62.0 in January from 58.7 in December, which had been upwardly revised. It was well above the forecast of 57.9 and is the highest reading recorded since the survey started in 1992.
New orders also reached their fastest rate on record. The manufacturing PMI has now remained above the 50 level for 18 months.
EEF Midlands head of external affairs Sue Kirby said: "Manufacturing continues to go from strength to strength, undeterred by either the weather or sluggishness in the rest of the economy. This incredibly strong start to the year at home and abroad is only countered by price pressures which are posing a stark challenge for firms trying to sustain growth through what is likely to be a challenging year.
"Industry is showing it is now the only sector capable of driving the recovery forward. government has a key role to play in throwing off the burdens of higher taxes and regulation and the growth review needs a cold hard look at whether polices will now nurture or derail companies' plans to invest and grow in the UK."
