British manufacturing sector posted a record growth in the month ending September, according to a survey conducted in the by Chartered Institute of Purchasing & Supply/RBS. The survey saw that the manufacturing sector received a shot in its arm with orders increasing particularly from regions such as US, East Asia, Middle East, and other countries of European Union.
September month, in particular, saw manufacturing activity swelling as the survey index climbed to 51.5from 50.3 in August. It is the highest recorded index since March. This index sees the 50 mark as the dividing line between growth and stagnation. Economists, in the wake of this news, are hoping that interest rates of Bank of England are left untouched at 4.5% when England’s monetary policy committee meets.
However, not all are upbeat about these findings. According to Steve Radley, who is the chief economist, at the Engineering Employers' Federation, "… these figures confirm our view that manufacturing is in far ruder health than the official figures have been suggesting."
The survey also showed that manufacturers were continuing with job cuts which have been the trend for the last eight years, though the percentage might be lower than before.
Concomitantly, manufacturers' prices also soared to the highest rate in the past seven months due to the increase in oil prices and other costs.
Monetary Policy Committee members including the Governor of the Bank, Mervyn King are, on the other hand, anxious over rise in inflation. Inflation, which has reached a nine year high of 2.4%, has been partially attributed to the spike in oil prices.
Posted
on : Wed, 05 Oct 2005 00:35 GMT | Business News
By : Salim Patel
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