Thousands of businesses are benefiting from the substantial growth of the UK manufacturing industry.
According to new data released by Markit, output has expanded at the fastest pace since March and average input prices fell for the third straight month.
Manufacturing production expanded for the second successive month whilst many manufacturing businesses, from motor suppliers to rubber manufacturers, are reportedly more willing to increase their spend.
Markit senior economist Rob Dobson was delighted with the way the industry has bounced back.
In an interview with nasdaq.com, he pointed out that the improved performance of the manufacturing industry could have a huge impact on the British economy as a whole.
He said: "Growth is nowhere near the surging highs of 12 months ago, but this is nonetheless a vast improvement on the 0.9 per cent reduction in output seen at the end of last year.
"Manufacturing was a key area of weakness which caused the UK economy to contract in the final quarter, so this surprising rebound in January means a return to recession is by no means a certainty."
Fresh Business Thinking report that Markit's UK Manufacturing Purchasing Managers' Index (PMI) rose to an eight-month high of 52.1 last month, up from a rating of 49.7 in December.
Author: Joe Elvin
1 February 2012
