UK manufacturing industry shows growth

Growth in both output and new orders helped to push the influential Markit/CIPS Purchasing Managers' Index (PMI) up to 51.4 last month from 49.2 in November, where anything above 50 signals expansion. According to Rob Dobson, senior economist at survey compiler Markit, the improved output came mainly in response to domestic demand, with the level of new export orders continuing to contract in line with low demand from the eurozone. Dobson said the data signalled "a reassuringly solid return to growth for the sector", although manufacturers remained "on a cost cautious footing". Lee Hopley, chief economist at EEF, also remained positive about the figures, but warned that the strength of the recovery would depend on what happens in other parts of the world. She commented: "2013 is likely to remain challenging and exporters, in particular, will be hoping to see stability in the eurozone and signs that demand will continue to hold up in the US and emerging economies in the coming months."