The UK's manufacturing sector grew at its fastest pace for ten months in March, a study finds.

The UK's manufacturing sector grew at its fastest pace for ten months in March, a study finds.

The Markit/CIPS Purchasing Managers' Index (PMI) rose to a ten-month high of 52.1 from a revised reading of 51.5 in February, with a reading of 50 or more signalling growth.

Despite there being a boost in new orders March's figures were helped by the clearing of backlogged orders.

The PMI has now signalled expansion for four successive months, with its average reading in Q1 2012 (51.8) the highest since the second quarter of last year.

David Noble, CEO of the Chartered Institute of Pruchasing & Supply says, ‘The continued growth in manufacturing over the past few months points towards a more sustained period of improvement in the sector, and less chance of manufacturing acting as a drag on the overall economy.

‘However, manufacturers are still under a great deal of pressure to manage costs and are burning through backlogs of orders to maintain production volumes. Headcounts are being kept to a minimum in part to offset the chronic rising cost of raw materials.’

Noble adds that the pick-up in domestic demand for consumer goods and reports of new product launches is particularly positive.

‘Reports that companies are building up inventories of finished goods suggests there is anticipation about a possible uplift in consumer spending. The even balance of expansion in new orders from home and markets outside Europe is also encouraging, helping to neutralise the effects of a weak Eurozone.’

See also: Survey reveals promising future for manufacturing