PMI indicates jobs boost

Manufacturers are planning to take on more employees in the coming months, according to the latest survey snapshot of the sector.

The Markit/Cips Purchasing Managers’ Index in November showed robust hiring intentions from firms, with the employment index rising to 54.4, the strongest reading since May 2011. Any reading above 50 indicates growth.

Job creation rose for the seventh consecutive month in November. And Markit said the latest growth occurred across firms of all sizes. The main manufacturing index jumped to 58.4 — up from 56.5 in October — its highest level since February 2011. Markit economist Rob Dobson said: “The recovery in the sector is translating into meaningful job creation”

Some analysts said the reading, above the 56 level expected by the City, could raise chances that interest rates will rise sooner than Bank of England Governor Mark Carney has suggested. “[The PMI figure] implies the UK economy is looking in good shape with interest rate rises looking increasingly probable from early 2015,” said James Knightley of ING.