Growth in British manufacturing sector points to continued GDP growth
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E-mail Xinhua, November 2, 2013
Growth in the British manufacturing sector is continuing according to Purchasing Managers' Index (PMI) figures revealed Friday, and economists said it points to strong growth for the final quarter of this year.
The October British manufacturing PMI was announced as 56.0, down on the revised September figure of 56.3, and was in line with market consensus.
The continued growth is the seventh month of growth for the British manufacturing sector.
Dr. Howard Archer, chief British and European economist with IHS Global Insight, said, "The solid October purchasing managers' survey indicates that the manufacturing sector is still seeing decent growth at the start of the fourth quarter and is on course to make a healthy contribution to GDP growth after expanding 0.9 percent quarter-on-quarter in the third quarter."
He added, "The survey not only shows decent output growth in October but solid new orders which bodes well for production in the near term at least."
Blerina Uruci, British economist with Barclays Economics Research, highlighted the role exports were playing in recovery in the sector.
She said, "External demand has now increased for seven consecutive months now and in October orders picked up from a range of trading partners including Asia, the US and mainland Europe."
She added, "The pick-up in overseas demand has played a significant role in the turnaround in manufacturing output over the past couple of quarters, after the soft patch in during H2 2011 and most of 2012."
Uruci said she expected this positive trend to continue and for manufacturing to support the recovery, although this comes from a low base.
She added, "Furthermore, given the small share of the sector in the overall economy its contribution to growth is likely to remain modest compared with the services sector." Endi
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