The resurgence of the UK’s small to medium-sized enterprises (SMEs) in the manufacturing sector continued in October.
Following on from a strong performance in the third quarter, the industry saw both new orders and production post figures above the average long-term rates again last month.
Markit’s purchasing managers’ index (PMI) dropped slightly from Septembers 56.3 to 56, but a PMI reading of 50.0 and above still demonstrates growth.
The improvement in global market conditions has boosted new export business for SMEs, while domestically we’ve seen a whole host of new contract wins.
In fact, the rate of SME manufacturing expansion in October was only just below the two-and-a-half year high witnessed in August.
As a result, job creation and industry confidence are both on the up.
Markit’s senior economist Rob Dobson said: “Maintaining this solid expansion will be important if we are to see any real signs of the economy rebalancing, as manufacturing remains nine per cent smaller than its pre-crisis peak.”
Posted by the Secret Businessman