UK manufacturing unexpectedly expanded in October at the fastest pace in two years in a sign factory production is recovering from the economy's longest contraction on record.
UK manufacturing unexpectedly expanded in October at the fastest pace in two years in a sign factory production is recovering from the economy's longest contraction on record.A gauge based on a survey of companies rose to 53.7 from 49.9 in September, the Chartered Institute of Purchasing and Supply (CIPS) and Markit Economics said today in London.
Economists predicted 50, the median of 30 forecasts in a Bloomberg News survey showed. Readings above 50 indicate expansion.
Today's figures will make the Bank of England's task tougher as it gauges this week whether the economy needs further stimulus.
While surveys of manufacturers and services companies have indicated the economy is recovering from the worst recession since World War II, a report two weeks ago showed it unexpectedly contracted in the third quarter.
"It appears that the manufacturing sector has turned a corner and is starting to pull itself out of recession," David Noble, chief executive officer at CIPS, said in a statement. "Manufacturing is still fragile and will be highly vulnerable for some time to come."
Bloomberg