Continued resurgence in manufacturing sector

Manufacturers can benefit from invoice finance to help release funds from their invoices

The UK manufacturing sector has continued to grow in August hitting heights not seen for two and a half years, according to the latest survey.

The latest Markit/CIPS purchasing managers’ index (PMI) leapt up to 57.2, with any figure above 50 indicating growth in the sector.

It is the fifth consecutive PMI figure in a row showing growth and is the highest recorded since February 2011. Both the volume of new orders and output also rose at their fastest pace for almost two decades.

Senior Economist at Markit, Rob Dobson, suggested the sector was starting to boom again following a lull over the last few years: “Orders and output are growing... as rising demand from domestic customers is being accompanied by a return to growth of our largest trading partner”.

The EEF Manufacturers’ Organisation also said it had upgraded its forecasts for the sector for 2013, as improving indicators across the majority of Europe suggested conditions will remain healthy for manufacturers into 2014.

Andy Grantham, SBF Sales & Marketing Director, said: “As conditions improve for manufacturers, ambitious owners can start to look again at growing their businesses, but cashflow issues may cause concern. ”

“Invoice finance offers manufacturers the chance to boost their cashflow, release funds from their unpaid invoices and take advantage of positivity in the industry”, he concluded.