UK factories show slight progress in September

Britain’s manufacturing sector saw a “welcome” slight improvement in September, though companies have been urged to follow through on investment plans.

The Markit/cips UK manufacturing purchasing managers’ index (PMI) showed a reading of 53.8 last month, up from 53 in August, and exceeding economists’ expectations of 52.5. A figure above 50 indicates growth.

The PMI reading rose at its fastest pace in four months, with new orders from both domestic and international markets improving.

Andy Hall, head of corporate banking, central Scotland at Barclays, welcomed the overall “modest uptick” in performance.

But he said it is “frustrating” to see manufacturing still stuck in low growth. “What the sector needs now is manufacturers following through, more and quicker, on investment intentions, particularly in areas such as smart tech, which is vital if the sector is to boost productivity and remain competitive at an international level.”