Manufacturing a ‘real winner’ in 2010 so far

Commenting on the new figures, Barclays head of manufacturing, transport and logistics Graeme Allinson said: "Despite a slight drop in output reported in April compared with the previous month, the manufacturing sector has so far been one of the real winners in 2010, with positive sentiment and growing order books highlighted in a raft of industry indicators during the first half of the year. "The big question now is whether short term confidence turns into long term growth and investment. The uptick in activity witnessed as destocking wound down is now giving way to more substantial sales growth, but unless we see serious investment in the sector to complement increasing orders, the recovery will remain constrained. "Clarity around public sector cuts and less volatile financial markets should move some way towards creating a more investment friendly landscape for manufacturers." The ONS figures showed output increasing in 11 of the 13 manufacturing sub-sectors. The largest increases in output were in the transport equipment industries which rose by 10.6 per cent and the machinery and equipment industries which rose by 10.4%. Within the transport equipment industries, the main rises were in the manufacture of motor vehicles and the manufacture of motor vehicle bodies, trailers and parts, and engine parts Within the machinery and equipment industries, the main rises were in the manufacture of machinery for the production of mechanical power and the manufacture of 'other special purpose machinery'.