Manufacturing in the U.K. jumped to a record high in the first month of 2011 as new orders drove growth, although inflationary pressures continued to increase, according to Financial Times. On Tuesday, the Markit/Chartered Institute of Purchasing and Supply Purchasing Managers’ Index was found to be at the highest level since its creation in 1992 as the gauge rose to 62 in January from 58.7 the previous month. On top of strong new order growth, the sub-index for employment was one point higher in January at 58.8, boosting hopes for a labor market recovery.
The report also showed that input prices continued to climb higher as the sub-index grew to 84.9 from 80.3 in December and 73.8 the previous month. The strong data was called “unprecedented,” and Capital Economics see the gain as being consistent with 2.5% growth in the sector. However, Bloomberg adds that a separate report from the Nationwide Building Society found that home prices in the U.K. slipped further in January as economic uncertainty weighs on demand. The group forecast, “The housing market is likely to remain sluggish in 2011.”
Click here to read the story on manufacturing from Financial Times.