The UK’s manufacturing sector had its greatest month for greater than a 12 months in October, a survey suggests.
The Markit/CIPS UK manufacturing PMI got here in at 55.5, up from 51.eight in September – any determine over 50 suggests enlargement.
The consequence was significantly higher than had been anticipated, displaying the best studying since June 2014 and one of many quickest rises because the survey started.
The advance comes regardless of dangerous information for the metal sector through the month.
The pound rose following the discharge of the survey. It was up a fifth of a cent in opposition to the euro and two fifths of a cent in opposition to the US greenback.
“The revival gives a tentative suggestion that the producers are pulling out of their latest funk, having been dogged by recession because the begin of the 12 months, and should assist enhance financial progress within the fourth quarter,” mentioned Rob Dobson, senior economist at survey compilers Markit.
“The massive query now’s whether or not this bounceback is a one-off or the beginning of a sustained re-emergence from recession.”
The manufacturing sector has contracted within the final two quarters, which means that by the same old definition, it’s in recession.
It contracted by zero.three% within the third quarter and zero.5% within the second quarter, in accordance with official figures from the Workplace for Nationwide Statistics.
Ruth Miller, UK economist at Capital Economics, mentioned that the “figures supply some hope that the sector could now have handed the worst”.
“Nevertheless, we might want to see a couple of extra upbeat surveys earlier than a renaissance in UK manufacturing might be declared.”