British industrial activity made an unexpected leap forward last December to the fastest pace of growth since September 2011. This new figure raises hopes that the UK economy will avoid recession in the last quarter of 2012 and recover at grow in 2013.
The Markit/CIPS Manufacturing Purchasing Managers Index (PMI) rose to 51.4 in December from 49.2 in November, marking a much higher increase than expected in a Reuters poll of 24 economists. According to the latest forecasts, the British economy is expected to contract by 0,1% in the last three months ending in December. However, data on production in services stronger than expected and these latest numbers that cross the 50-point mark (which separates growth from contraction ) feed the expectation of a more positive closing of 2012.
“The UK manufacturing sector ends 2012 on a positive note – comments Rob Dobson, the economist who edited the study – December data for the PMI signal a solid return to growth. The domestic market remains the main source of stimulus. But there are also signs that trade flows are stabilizing at a time when China and the United States are strengthening and negativity in the eurozone is easing.
China Daily
