Manufacturing bucks the trend as ONS figures released

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Manufacturing output over the first three months of 2017 expanded by 0.5%, according to the latest ONS figures.

The overall economy grew by just 0.3% - less than the expected figure of 0.4%, and down from 0.7% growth at the end of 2016.

The ONS highlighted the services sector as being the main cause of the slowing in growth, with hotels, restaurants and distributors falling by half a percentage point due to rising inflation.

Overall industrial production grew by 0.3%, with manufacturing’s above-average performance thanks to the recent jump in motor vehicle output.

Commenting on the results, Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, was quick to warn against seeing the results as a negative.

“Today’s estimate seems to confirm the slowdown that economists have been predicting,” she said. “However, even with the pace of expansion dropping we shouldn’t be too hasty in dialling up the despair about the outlook for the UK economy.

“There are clearer signs that the consumer is wavering as inflationary pressures have picked up, but the production related sectors of the economy are forging ahead thanks to an improving global picture and the more competitive pound.

“Manufacturing also saw another solid quarter with output increasing by 0.5% and official data indicating that this positive trend was fairly broad based across sub-sectors.”