Manufacturing output shrank less than expected last month, adding to hopes that the economy can keep growing in the fourth quarter.
The Markit/Cips purchasing managers’ index for the manufacturing sector jumped to 49.1 – its highest level since August – from October’s downwardly revised 47.3, ahead of even the most optimistic forecasts but below 50 mark that indicates growth.
Economist Howard Archer, at IHS Global Insight, said the survey raises hopes that the manufacturing sector will not hold back gross domestic product in the fourth quarter, so if the services sector can keep growing and consumers spend over Christmas, the economy have a chance of avoiding a renewed dip.
The survey reinforces expectations that the Bank of England will hold off from further bond buying this month.