Manufacturing output rises by 3.2%
Friday 07 September 2012
The recovery was offered “genuine hope” today as official figures revealed the strongest monthly rise in manufacturing output for 10 years.
Manufacturing output grew by 3.2% in July, the Office for National Statistics (ONS) said, while the wider index of production grew by 2.9%.
The largest contributions to the month on month rise in manufacturing output came from the manufacture of basic metals and metal products, which rose by 6.2%, followed by the manufacture of transport equipment, which rose by 6.3%, the ONS added.
Howard Archer, chief UK and European economist at IHS Global Insight, said the sharp rebound provided a "significant lift" to growth prospects in the third quarter, after three quarters of contracting gross domestic product (GDP).
Within the index of production, the mining and quarrying sector rose by 4.9% and the water and waste management sector rose by 1.6%.
These increases were slightly offset by the electricity, gas, steam and air conditioning sector, which fell by 0.2%, the ONS added.
The previous month's production figures suffered from the double whammy of an extra bank holiday for the Queen's Diamond Jubilee Holiday and from the typical late May bank holiday being moved into June.
Accordingly, industrial production output slid by 2.4% between May and June.
Victoria Clarke, economist at Investec, said: "The strength of the July rebound is likely to quell some of those nerves that the UK industrial sector could weigh heavily on third-quarter GDP, limiting any post-Jubilee rebound in overall economic output."
A purchasing managers survey for August also revealed signs of an improving performance in the manufacturing sector.
The economy shrank 0.5% between April and June, for the third consecutive quarter, confirming the double-dip recession as the longest since the 1950s.
- 1 Labour rallies behind Flint as deputy leader to offset a Corbyn win
- 2 The difference between a psychopath and a sociopath
- 3 It won’t work, Jeremy: The Health Secretary has lost the confidence of the medical profession in his attempt to reform the NHS
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 'Cool kids' can go on to become losers in later life, study finds
Labour rallies behind Flint as deputy leader to offset a Corbyn win
Kim Jong-un is awarded global statesmanship prize by Indonesia
Dutch King Willem-Alexander declares the end of the welfare state
RuPaul interview: The drag star on being inspired by Bowie, never fitting in, and saying the first thing that comes into your head
Calais crisis: Migrants that have made it to the UK reveal how Britain has matched their expectations
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...