UK factory owners reported continued strong growth during December, according to a monthly survey, although the rate of growth declined month-on-month.
The Chartered Institute of Purchasing and Supply's (CIPS) purchasing managers index for manufacturing registered an overall score of 53.7 last month, down from 55.0 in November.
On the CIPS scale, a score of more than 50 denotes growth in the sector, the higher the number the faster the rate of growth.
In further good news for the industry, the rate of business growth, a figure that contributes to the index, increased over the month, as new orders climbed to a score of 55.5.
Firms attributed the higher number of orders to improved business conditions and the launch of new products.
Encouragingly, manufacturers also reported solid growth of new export orders, the fourth consecutive monthly rise, with Europe and the Far East named as the main export destinations.
Roy Ayliffe at CIPS said, "Growth was mainly underpinned by expansion of new orders and increased output. December's level of employment fell, however, as firms reported reducing staff, in an attempt to offset rising input costs."
The positive tone of the data weighs against government figures and several other surveys. The latest Confederation of British Industry report showed that the industry was suffering under pressure from rising input prices.
Separate figures from CIPS published today show that the construction industry had another strong month in December, registering a score of 57.2 compared with 56.7 in November.
Demand in the housing sector was the main driver behind the strong results, said the group.
