08 March 2010
The UK manufacturing sector continued its solid recovery in February
The headline seasonally adjusted CIPS/Markit Purchasing Managers' Index (PMI) posted 56.6, unchanged from January's fifteen-year high.
The PMI has remained above its neutral level of 50.0 for five successive months.
Companies reported improved new order flows from both the domestic and export markets. Total new business rose at a rate close to January's six-year high, reflecting successful product launches and clients rebuilding their inventories. Meanwhile, growth of new export orders accelerated to its fastest since at least January 1996 (when data on new exports were first collected).
Gains in new exports were linked to higher sales in the US and Asia, supported by improving global market conditions and the ongoing weakness of sterling.
Despite easing over the month, the rate of growth in purchasing activity during February was still the second-strongest since November 2007. Companies reported that this reflected rising levels of production and efforts to guard against future price increases. Stocks continued to be depleted, however, with holdings of both raw materials and finished products lower than in the previous month.
The Chartered Institute of Purchasing & Supply (CIPS) is the leading international body representing purchasing and supply management professionals. The CIPS/Markit UK Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 600 industrial companies. The headline Manufacturing PMI is calculated using data collected on new orders, production, employment, supplier performance and stocks of purchases.
Author
Michael Richards
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