"Despite only accounting for less than 11% of the economy, the current strength of growth seen in manufacturing means the sector will still provide a major boost to the economy in October"
- Rob Dobson, senior economist at Markit
The fastest pace of growth in export orders in more than two years boosted U.K. manufacturing, which grew strongly in October, reinforcing the view that the nation's economic recovery is gaining a broader base. The latest Markit/CIPS Purchasing Managers' came in at 56.0 last month compared to a downwardly revised 56.3 in September, but still signalling robust growth, since a figure above 50 indicates expansion. The U.K.'s manufacturing sector has expanded strongly in recent months, notching up its seventh straight month of improvement, but it is still around 9% smaller than pre-crisis level, while the services sector has already recovered the pace it lost in the 2008-2009 downturn.
Last week official data also showed the U.K. economy grew 0.8% in the September quarter, its strongest performance in over three years, boosted by a 0.9% expansion in the manufacturing sector. The government and the central bank have also been banking on improved exports demand to help growth. The PMI sub-index for export orders increased to 56.5 from 53.6, the highest level since February 2011, with improvements in demand from the U.S., Asia, mainland Europe, the Middle East and Russia. Nevertheless, Bank of England Governor Mark Carney stated that growth was largely reliant on consumer demand and increasing house prices.
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