Output and new orders have risen in the last month at the fastest rates since 1994.
The Markit/CIPS Purchasing Managers’ Index for the UK showed a strong performance as output and new orders rose sharply.
The index posted at 57.2, up from the seasonally adjusted 54.8 in July.
Chartered Institute of Purchasing and Supply (CIPS) CEO David Noble said:
‘A two-and-a-half-year high thanks to the biggest jump in output and new orders in almost two decades. This boon was driven by strong domestic demand and accelerated growth in export orders; all of which are a sign of growing confidence in the UK economy more broadly.
It is particularly promising to see strong performance across all three sectors of the market. The intermediate sector and industry bellwether was the strongest performer in August, which bodes well for the future.’
Noble also noted that average delivery times had lengthened for the third consecutive month as this increase in orders has put pressure on suppliers.
Employment growth was down during August. Noble says this is a result of firms seeking to maximise staff capacity before recruiting.
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