UK manufacturing growth accelerated in October

Growth in the UK's manufacturing sector accelerated slightly in October, despite weakness abroad, particularly in the Eurozone, according to the results of a survey.

The headline index for Markit's manufacturing sector purchasing managers' survey increased to a reading of 53.2 from 51.6 in October.

The previous month's print was revised slightly lower to 51.5 - a 17-month low - from an initial estimate of 51.6.

The consensus estimate had been for a small dip in the headline index to 51.4.

Growth last month was mainly a function of the domestic economy, as external demand was impacted by the ongoing weakness in the single currency area and the euro-sterling exchange rate.

Markit interpreted the figures as "a positive marker for the start of the fourth quarter" but added that "reports from companies mentioning slower inflows of new business from markets such as the US and China also paint a less than rosy picture for exports moving forward.”

Despite a fall in new export orders for a second month running, overall production in the manufacturing sector recovered to a three-month high after September's lows. Expansion was underpinned by better inflows of new work and efforts to clear outstanding business.

Large increases in production were particularly evident in the consumer and intermediate goods sectors, although manufacturers of capital goods also saw a "solid gain in output volumes".

Staffing continued to improve, especially at small and medium-sized enterprises. Nevertheless, it did so at its second slowest rate since last June.