Britain’s economy supported by continuing strong manufacturing output
BRITAIN’S manufacturing sector grew for the fourth month running in November as a weaker pound sparked an increase in new business from around the globe.
Britain's manufacturing has seen continuing growth for four months now
Production lines churned out more goods for customers in America, the Middle East and Europe, according to a closely watched snapshot of industry activity.
The Markit/CIPS manufacturing purchasing managers’ index dipped slightly from October’s 54.2 reading to 53.4, but was still well above the 50 mark denoting growth.
The update on manufacturing, which generates about 10 per cent of GDP, came as the CBI forecast a £208 billion boost to the UK economy over the next decade from improving productivity around the country.
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The business lobbying group said this value could be added by bringing each area up to the same level as the top performer in their respective region.
Raising productivity across all parts of the UK should be the single most important domestic goal of the next five years
This could be achieved by improving transport links between cities in the North of England, reducing urban congestion, focusing on building the right skills and opportunities for young people and targeting Government help for firms with exporting potential.
The CBI said it is developing regional productivity “scorecards” that will assess the performance of local areas relative to the rest of the UK, providing evidence to identify practical steps to plug the gap between regions.
Carolyn Fairbairn warns of an economic gulf between different parts of the UK
CBI director-general Carolyn Fairbairn, pictured, said: “Some of our regions and nations have been left behind. There is a real gulf in opportunities between people in different parts of the UK. You might expect big gaps in productivity between regions, but productivity differences within regions are almost as big.
“For example, Solihull is a third more productive than Wolverhampton, just 20 miles away, where you’ll earn on average £5,000 less.
“Raising productivity across all parts of the UK should be the single most important domestic goal of the next five years.”
Britain's manufacturing accounts for about 10 per cent of its GDP
The purchasing managers’ survey highlighted rising cost pressures from sterling’s weakness, leading to higher selling prices at the factory gate.
IHS Markit senior economist Rob Dobson said: “The pace of expansion is solid and above its long-term trend.
“This should be suffi cient to ensure manufacturing is a positive contributor to fourth quarter GDP.”