Growth in the UK’s manufacturing sector accelerated last month, according to a closely watched survey, with output, orders and employment all picking up.
The Markit/CIPS purchasing managers’ index (PMI) for manufacturing rose to 56.9 in August from 55.3 in July. A figure above 50 indicates expansion.
Rob Dobson from Markit said the sector continued to make “solid progress”.
He added that manufacturing should help to support growth in the economy during the third quarter of the year.
The Markit/CIPS survey found that production increased at the fastest pace for seven months in August, helped by a pick-up in new orders.
The main source of new orders was the domestic market, although orders from abroad “remained robust”.
The rate of job creation in the manufacturing sector rose at the fastest pace for 13 months, the report said.
Mr Dobson said it was increasingly likely that growth in the sector would be maintained “given the breadth of the expansion”, with both big and small companies seeing conditions improve.
“The survey data suggest that the manufacturing economy remains in good health despite Brexit uncertainty, and should help support on-going growth in the economy in the third quarter, which will add fuel to hawkish policymakers’ calls for higher interest rates.”