UK manufacturing growth accelerated to the fastest since June 2014 last month led by higher demand for British-made goods at home and abroad and a pickup in new orders, IHS Markit said.
The Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI) rose to 56.1 in December from 53.6 in November, Markit, which compiles the survey, said on its website on Tuesday. Economists predicted a drop in the index to 53.3, according to poll on investing.com.
The figures point to a quarterly pace of growth in UK official manufacturing of 1.5%, according to Rob Dobson, senior economist at Markit.
“The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround, while the domestic market has remained a strong contributor to new business wins,” Dobson said. “A plus point from the December survey was that the expansion was led by the investment and intermediate goods sectors, suggesting capital spending and corporate demand took the reins from the consumer in driving industrial growth forward.”