LONDON, Dec. 1 (Xinhua) -- British manufacturing purchasing managers' index (PMI), a gauge of the industry activities, edged up to 53.5 in November 2014 from 53.3 in October 2014, as domestic market boosting the industry's activities, said Markit Economics Limited on Monday.
MAIN PILLAR
The figure is well above the market estimates consensus of 53, and it is the fastest activities expansion over the past four months. A reading above 50 indicates expansion.
The domestic market remained the "main pillar" supporting the upturn, while the trend in new export orders remained subdued, said the London-based survey compiler.
Manufacturing production rose for the twentieth successive month in November, as companies scaled up output in response to improved inflows of new work, said Markit.
Manufacturing employment increased for nineteenth consecutive month in November, and the rate of job creation recovered to reach a four-month high, it said.
Meanwhile, price pressures last month remained subdue, with average output charges rose at the weakest over the past 17-month period, data also showed.
Rob Dobson, Senior Economist at Markit, commented:" Despite easing from the stellar pace set in the first half of the year, growth is still coming from a broad-base that will aid its sustainability."
"The only real negative from the survey came on the export-side, with new export business suffering a further slight decline. Slower global economic growth is hitting scales to emerging markets, while a strong sterling-euro exchange rate is also stifling trade with the eurozone nations," he added.
INTACT PROSPECT
Economists here are confident on the manufacturing sector's outlook even though they think dismal external market would weaken its prospects.
Martin Beck, senior economic adviser to the EY ITEM Club, said in a note that:" Today's data provides more reassurance that the UK economy is not going back to its bad old imbalanced ways."
Although the divergence between robust domestic demand and export weakness has continued, overall, the very subdued picture for British inflation and the prospect of a further period of unchanged interest rates looks under no threat from the manufacturing sector, said Beck.
Paul Hollingsworth, UK economist at Capital Economics, also commented that November's survey signaled that strong domestic demand is ensuring that the sector's recovery does not grind to a halt in response to weak overseas demand.
Moreover, falls in oil prices should provide a timely fillip to growth, he said.
