British manufacturing activity grew in June at its briskest pace in seven months, a survey released today has shown.

The Markit/Chartered Institute of Purchasing and Supply (CIPS) Manufacturing Purchasing Managers’ Index (PMI) rose unexpectedly to 57.5 in June from 57.0 in May – its highest increase since November 2013 and one of the greatest extents since the survey began in 1992.

The growth in the sector signals good news for contractors, as well as full-time employees – the report shows manufacturing employment rose for the fourteenth successive month in June and at the fastest rate in three years, as improved inflows of new business and increased production encouraged firms to expand capacity.

The steepest rate of job creation was registered by SMEs, with large-scale companies also reporting increase in payroll numbers, adding to signs that the UK economic recovery is broadening.

Rob Dobson, Senior Economist at Markit, said:

“UK manufacturing continued to flourish in June, rounding off one of the best quarters for the sector over the past two decades. With levels of production surging higher, and order books swollen by a further upswing in demand from both domestic and overseas clients, job creation accelerated to its highest for over three years.”

Manufacturing output increased for the sixteenth successive month in June  and the CIPS saw ‘robust’ production growth maintained across the consumer, immediate and investment goods sector.

The majority of contracts were reported to come from within the UK, although new export business also strengthened with UK manufacturers reporting growth in work received from clients in Europe, Asia and the Middle East.

David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said:

“The brightening economic conditions and new product offerings meant that there was a healthy appetite to push into new markets.”

 

Photo by Steve Jurvetson