Manufacturing sees surprise growth at start of 2012

The UK manufacturing sector began the New Year on a positive note, as a key sector index reached an eight-month high at the end of January.

The Markit/CIPS Purchasing Managers’ Index jumped to 52.1 in January, climbing from 49.7 in December. Any figure about 50 indicates growth, so January saw noticeable growth in comparison to a slight shrinkage in the sector in December.

Factors contributing to the growth included output expanding at its fastest pace since last March, new orders increasing and cost pressures easing.

Lower costs were reported for commodities, metals, packaging, paper plastics and timber, which also lead to a welcome rise in profit margins.

Senior economist at Markit, Rob Dobson, felt that the good news would be much welcomed across UK business, “This is a vast improvement on the 0.9 per cent reduction in output seen at the end of last year.”

Factoring solutions for manufacturers

Manufacturers may often struggle to access external sources of finance as the banks clamp down on lending.

However there are fast, efficient and flexible solutions that Manufacturers can use to increase cashflow, such as factoring and invoice discounting facilities.

If you’d like to discuss your manufacturing firm’s funding requirements, why not give us a call today.