Manufacturing activity in the U.K. continued to expand at a record pace in the second month of the year as exports rose strongly, with the sector’s employment surging on the increase in activity, according to Financial Times. On Tuesday, the Chartered Institute for Purchasing and Supply reported that the purchasing managers’ index for manufacturing in the U.K. remained at a record high of 61.5 in February, which suggests that the contraction in the final quarter of 2010 was weather-related.
The strong manufacturing growth moved employment growth to the highest level in almost 20 years of data. CIPS chief David Noble said, “Strong growth in demand across the manufacturing sector continued to put breath in the sails of the U.K. economy in February.” However, the report also showed that inflationary pressures remained high, driven by surging commodity prices, and Noble warned that inflation “is likely to go from bad to worse” due to rising energy costs.