Fall in oil prices boost UK manufacturing industry
Despite the eurozone economy that forces manufacturers to hold back exports, the UK manufacturers have seen a boost in business due to the strong demand for goods and a fall in oil prices.
A survey conducted among purchase managers showed that it is becoming more important to have trade relations with British customers and business with UK companies comprise 10 per cent economic output of the country and it slowed to a three-month low this December.
The Market/CPIS purchase managers’ index fell to 52.5 last month while it still remained over the threshold of 50. The same figure for October and November in 2014 was 53.3. In nearly two decades, manufacturers saw a growth period and it also helped increase car production.
Howard Archer, chief of IHS Global Insight and European economist said, “Manufacturing activity has clearly lost appreciable momentum compared to the peak levels seen earlier in 2014. Nevertheless the survey evidence still clearly points to manufacturing expansion and there are grounds to hope that the sector can enjoy a decent 2015. The prospects for domestic demand for manufacturers look reasonable.”
He added that the rising employment, high confidence among consumers and the purchasing power that has been increasing of late and the affordable and decent housing market will mark a rising need for durable goods. The fall in oil prices are helping manufacturers to carry out their manufacturing activities easily and also offer goods at competitive prices. Eurozone manufacturing had remained stagnant until last month and the PMI was up to 50.6 in November.