Clearview North February 2014 - Issue 147 | Page 72
BUSINESSNEWS
UK manufacturing recovery
retains momentum
The manufacturing recovery remained
on track at the end of 2013, as rates of
expansion in production and new orders
were among the highest in the 22-year
history of the UK manufacturing PMI.
Job creation was close to November’s twoand-a-half year record as firms benefited from
stronger domestic market conditions, the
index from Markit/CIPS revealed.
Output rose for the ninth successive month
in December, fuelled by an increase in new
work and efforts to clear backlogged work.
‘The domestic market
remains resurgent with
higher new order inflows’
Rob Dobson, senior economist at survey
compilers Markit: “UK manufacturing’s
strong upsurge continued at the end of 2013,
with rates of growth in production and new
orders still among the highest in the 22-year
“With the manufacturing sector still some
9% off its pre-crisis peak production, the
question everyone wants answering is whether
this upturn can develop into a self-sustaining
recovery. The news is still good on this score,
as growth is coming from a broad base that
should help keep the rebound on track during
the early stages of 2014.
PMI survey history. On its current track, the
sector should achieve output growth of over
1% in the final quarter while filling around
10-15 thousand jobs, continuing its positive
contributions to both the broader economic
and labour market recoveries.
“The domestic market remains resurgent
and is a major factor driving production and
new order inflows higher. UK exporters are
also finding pockets of strength, with sales of
capital and intermediate goods rising solidly
to destinations such as Brazil, China, Ireland,
Russia and the USA.
‘Output and new orders
are rising across all
manufacturing sub-sectors’
“Output and new orders are rising across
all manufacturing sub-sectors and also
at SMEs and large-scale producers. The
strong performance of intermediate goods
manufacturers suggests that firms are refilling
their warehouses, while robust growth at
consumer and capital goods producers
indicates that household and investment
spending are also still playing a key role.”
FUNDING BOOST FOR NEW
AFFORDABLE HOMES
Housing Minister Kris Hopkins welcomed a
deal that will release £500 million additional
funding to build new affordable homes
across the country.
This new investment, secured through an
agreement with the European Investment
Bank (EIB), will help deliver up to 4,300 new
affordable homes to rent.
The funding will form part of the £3.5 billion
Affordable Housing Guarantees programme,
which enables housing associations to use
a government guarantee to secure private
investment at more competitive rates than they
would otherwise.
Kris Hopkins said: “This deal with the
European Investment Bank is a vote of
confidence in our ongoing efforts to restore
confidence to our housing market and get
Britain building.
“This £500 million investment will help
deliver up to 4,300 new affordable homes across
the country, on top of the 170,000 affordable
homes we’ve already delivered since 2010.
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FEB 2014
Jonathan Taylor, European Investment
Bank Vice President responsible for the UK
said: “The initiative will significantly enhance
construction of affordable housing by housing
associations across the country.”
FIRST BORROWERS
Mr Hopkins also confirmed the first eight
housing associations to receive funding through
Affordable Housing Guarantees are:
• Devon & Cornwall Housing Limited, who
will borrow up to £85 million to build 887
homes in those counties.
• Hexagon Housing Association will borrow up
to £12.5 million to build 74 homes in Greater
London and the South East.
• First Wessex will borrow up to £88 millio