According to the latest Markit/CIPS purchasing managers’ index (PMI) recorded a 15-month high of 51.4 – demonstrating a return to growth for the first time since March and the highest reading since September 2011.
Output increased for the second month running, with the rate of growth accelerating sharply to a 20-month high. Manufacturers were boosted by increased demand from British firms, which helped output from the sector rise at the fastest pace for 20 months, offsetting an ongoing slump in orders from the crisis-hit eurozone.
Rob Dobson, senior economist at Markit, said: “The domestic market remained the main spur for growth of production and new orders in December, although there are also signs that global trade flows are stabilising as China and the US strengthen and the downturn in the eurozone eases.
“If the recovery in overseas markets continues to build at the start of 2013, this would be of major benefit to UK exporters”.
Stockport manufacturer, Hughes Safety Showers, have seen increased overseas sales.
During the past five years, the Company has increased exports by over 200% and plans to continue growing the business by opening new markets.
The Company, founded in 1950 and part of JD Hughes Group Plc., is Europe’s largest manufacturer of Emergency Safety Showers and Eye wash Equipment. Now, it is preparing to explore previously untapped markets in South America as well as expanding its presence in South East Asia and the Far East. Hughes products provide vital first-aid and are used wherever there is a risk of chemical splashes or spills. After an accident, workers simply wash off potentially harmful substances before they cause serious injury. Hughes showers have even been installed under the swimming pool at Buckingham Palace!
Howard Archer, chief European & UK economist at IHS Global Insight, said the manufacturing improvement may also help the wider economy avoid an end-of-year contraction.
“The marked pick-up in manufacturing activity in December is a significant boost to hopes that the economy was at least flat in the fourth quarter and could even have grown marginally” .