Will manufacturing be up to scratch in 2012?

Export orders making up for a weak domestic market?

A digest of news gathered from several sources shows that there is still a great deal of confusion around; globally, manufacturing in the USA appears to be on the up while the outlook for the UK remains weak. Nevertheless, some are predicting a stable, if not thrilling, performance from British manufacturing in 2012. Here's a globe-trotting round-up of some recent reports…

The Financial Times has reported that The Institute for Supply Management's (ISM) purchasing managers' index closing figure of 53.9 for 2011 indicates expansion in the US, with an ISM spokesperson describing the 2012 outlook as 'optimistic'. The FT also printed this cautious quote from Holden Lewis, industrial analyst for BB&T Capital Markets, stating that the ISM's findings marked, "improvement in the overall macroeconomic environment or at least sentiment".

Investment website Mindful Money observed that Japan continues to struggle as the result of a number of factors that go beyond the economic, such as shortages in the supply of electricity wrought by the recent earthquake and tsunami crises. Meanwhile, as the Japanese industries that grew strong in the 20th century teeter, those of their neighbours in China and India have achieved modest, if steady, expansion.

Few would argue that there is anything but weakness in most territories within the Eurozone, while UK figures continue to steer clear of the bleakest predictions. The Markit/CIPS purchasing managers' index (PMI) survey found a stabilisation of UK manufacturing in December that reflected growth in new export orders, which made up for a weak domestic market.