Driven by a higher demand for British-made clothing, the UK manufacturing industry saw its best output returns since May last year. <br />
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For the third consecutive month, new orders for British-made clothing were on the rise. Analysts had projected the Markit/CIPS Purchasing Managers’ Index to rise to just 50.3, but it reached the highest level since March of last year – 51.3. Although production throughout the food and drink sectors continued to rise steadily, the UK’s clothing and textile sectors' output grew at the fastest rate for more than two years. <br />
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The impressive boom these sectors have seen may be due to April’s clothing factory tragedy in which over 1,000 Bangladeshi workers were killed.<br />
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According to Markit’s Chief Economist Chris Williamson, “the upturn was only evident in the domestic market, so that could suggest more people were seeking out UK-based clothing suppliers.”<br />
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Other sectors in the UK are also on the rise. Cars manufacturers experienced their highest level of demand since 2012 and manufacturing firms began hiring more aggressively in the last four months. Countries like Germany, France, Russia, East Asia, Canada, and the United States are contributing to this economic growth through an increased interest in British exports.<br />
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The news had a positive effect on the markets, with the pound climbing over a half a cent against the dollar and the euro to $1.5309 and €1.1764 respectively.<br />
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The government plans to rebalance the UK’s economy through manufacturing and boosting its exporting efforts throughout the year.