UK factory activity sees big rise

UK factory orders rose at their fastest in almost six years and activity grew at its fastest pace for two years in October, according to the Chartered Institute of Purchasing and Supply (CIPS).

The survey amongst members suggests the economy has made an encouraging start to the final quarter of the year.

The CIPS index grew to 53.7 from 49.9 in September, and is at its highest level since November 2007.

We are all searching for the fabled “Green Shoots of Recovery” and – allied to last week’s news about retail sales in my earlier blog, some are around!

Another survey showed that the UK’s 350 largest companies could boost profits by £53bn if they cut their procurement and supplier costs by just 5%. The argument is that rather than cut cost by reducing headcount, business needs to focus on reducing procurement costs. Headcount cuts may mean permanent skill cuts and stymie a company from growing again at the right time. This supports the benefit that Expense Reduction Analysts bring to clients as overhead cost savings flow straight to the bottom line.