Bright signs as ONS reports 1.6% output rise

The most significant month on month increases in output came from the manufacture of machinery and equipment, which was up 8.0%, followed by the chemicals sector – large pick-ups of particular note, said the manufacturers' organization EEF. In contrast, manufacture of wood & paper products and printing, rubber and plastic products and pharmaceuticals, all fared less well. Economic commentator Chris Williamson, chief economist at Markit, said: "Manufacturing and trade showed signs of renewed life in December, adding to indications that the UK economy gathered momentum at the end of last year. The improving trends in output and exports mean there is a reduced risk that the country slid into a triple-dip recession, but this of course depends on the momentum being sustained during the first quarter, which is by no means assured. "The increase in production was in part fueled by rising exports," he added. "Although the steepness of the overall decline in production in the fourth quarter is a disappointment, the December data are encouraging, especially as further growth is likely in January." Andrew Johnson, senior economist at EEF, said the more positive figures in December weren't enough to change the pretty weak picture for the sector in the fourth quarter. On a more positive note, he continued: "If we see a few more signs that prospects in key markets are stabilising in the coming months, manufacturing output and our export performance should kick start a bit more growth in the coming year."Signs of 'renewed life' for UK manufacturing