Manufacturing job creation sees strongest rise in three years

Umbrella company contractors working in the manufacturing sector will be pleased to hear that the industry has been boosted by near survey-record growth of new export orders.

The IHS Markit / CIPS UK Manufacturing Purchasing Managers’ Index (PMI) found that the rate of improvement in UK manufacturing operating conditions accelerated for the first time in three months at the start of the third quarter.

It was also revealed that the ongoing upturns in output and new orders encouraged further job creation in July. Staffing levels rose for the twelfth straight month and the pace of expansion was among the best registered over the past three years.

Rob Dobson, Director at IHS Markit, which compiles the survey, commented, “UK manufacturing started the third quarter on a solid footing. The headline PMI signalled a growth acceleration for the first time in three months during July, as new order intakes were boosted by a near survey-record increase in new export business. Although the exchange rate remains a key driver of export growth, manufacturers also benefitted from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions.

“Continued expansion is also still filtering through to the labour market, with the latest round of manufacturing job creation among the best seen over the past three years.”

Duncan Brock, Director of Customer Relationships at the Chartered Institute of Procurement & Supply, added, “The manufacturing sector remained on terra firma this month, with a sustained rise in new orders, overall activity, new jobs, and with strong optimism to boot.

“There was good news for job hunters with one of the strongest rises in employment for three years and gains for the twelfth progressive month as manufacturers showed optimism for future business.”


Alastair Stallwood is an Apprentice for ContractorUmbrella Ltd, one of the UK’s Most Respected Umbrella Companies.