British manufacturing growth quickened unexpectedly at the start of the year to the strongest level in three months, survey data from Markit Economics showed Monday.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index for manufacturing rose to 52.9 in January from 52.1 in December. Economists had expected the index to fall to 51.8.
Any reading above 50 indicates expansion in the sector. Moreover, the index has remained above the neutral 50.0 mark for thirty-four successive months.
Output growth accelerated to 19-month high in January, reflecting improved inflows of new work from the domestic market.
At the same time, new export orders dropped during the month. Companies attributed lower overseas sales to stronger competition and tough market conditions.
Manufacturers reduced their staffing levels in January. Although the rate of decline in staff headcounts was only moderate, it was nonetheless the fastest for almost three years.
On the price front, input prices fell at the fastest pace in four months, dragged down by the ongoing weakness in global commodity prices. As a result, output prices declined for the fifth successive month.
“Subdued growth, rising global headwinds and a lack of inflationary pressure provide further cause for the Bank of England to push its first rate increase into the back and beyond of 2016,” Rob Dobson, Senior Economist at Markit, said.
The material has been provided by InstaForex Company – www.instaforex.com