A robust rise in manufacturing activity at the end of 2016 and in the output balance of the Markit/CIPS manufacturing survey have raised hopes that the sector is getting back onto its feet. Admittedly, the sector faces a number of headwinds, not least from weaker demand for investment goods.
But with manufacturing exports set to benefit from falls in sterling and solid demand from abroad, the future looks more promising than it has done for some time. Not only should this help ensure that the economy does not slow too much this year, but it could result in a rare period of outperformance over the services sector – for the first time since 2011.
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