UK manufacturing ends 2012 on a high

Economists had pencilled in a contraction in activity, with a consensus estimate of 49.1.

However, the survey showed that manufacturers remain cautious, reporting lower levels of purchasing, the running-down of inventories, and a reluctance to employ more people.

December's higher output was driven by demand from the domestic market.

The total volume of new work received increased for the second month in a row, despite the level of new export orders contracting again.

Overseas demand fell in every month of 2012 as conditions in the UK’s main export partner, the Eurozone, have generally remained subdued throughout this period.

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