'March of the makers' good for North East
Growth in UK manufacturing production and a surge in new orders is great news for the North East, say the Centre for Process Innovation (CPI).
This week’s UK Manufacturing Purchasing Managers Index (PMI) signalled expansion in UK production, lead by a strong growth of output and new orders in the consumer goods sector.
Redcar-based CPI, who work with industry, academia and public sector to apply science and engineering to growth of high value manufacturing, say the news is encouraging for the future.
Nigel Perry, CEO at the CPI, said: “This is great news for both the North East and UK as a whole. The increased demand for manufacturing is vital in the short term but also very encouraging for the long term and CPI is a part of that equation.
“At CPI, our core purpose is to enable companies to develop the next generation of products and processes. One of seven partners that form the UK’s High Value Manufacturing Catapult, we play an integral part in rebalancing the economy towards manufacturing.”
Markit/CIPS PMI showed new export businesses rose at the fastest pace for two years in July, reflecting increased sales to Australia, China and Mexico, among other economies.
Manufacturing employment rose for the third successive month in July, with particularly strong increases in the capital and consumer goods sectors.
David Noble, CEO at the Chartered Institute of Purchasing & Supply: “The much vaunted march of the makers has finally materialised with the UK manufacturing sector’s output growth hitting a 29-month high in July.
“Exports have been critical to this success, but it is the broad based nature of the sector’s performance which endorses the view we are on track for solid and accelerated growth in the coming months.
“The ability of British manufacturers to market themselves abroad was always seen as crucial to long-term success and so it has proved. New export business has grown at its quickest rate in two years in a sign that macro-economic conditions are improving. Domestic performance has also been strong.
“The consumer goods industry has led the recovery, however it is perhaps even more encouraging to see increasing output and orders in both the intermediate and investment goods industries as well. As a result, confidence is high, jobs growth climbed to a two-year peak and the relatively subdued nature of inflationary pressures rounds off a very good month for manufacturers.”
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