Manufacturing continues to drive the UK economy

The new October figures from the Office for National Statistics showed manufacturing output increasing by 0.6 per cent with increases of 2.6 per cent in the transport equipment industries, 2.5 per cent in the machinery and equipment industries and 0.8 per cent in the electrical and optical equipment industries making the largest positive contributions. The largest negative contribution to overall output was a decrease of 1.1 per cent in the food, drink and tobacco industries. Year on year, total manufacturing output increased by 5.8 per cent in October. Commenting on today's figures, Barclays head of manufacturing Graeme Allinson said that despite moving in the right direction, UK manufacturing had not yet experienced the stellar recoveries seen in some northern European neighbours, particularly Germany. He went on: "Although the recent growth in German manufacturing is good news for the many UK manufacturers that feed into their supply chain, the manufacturing model in Germany must now be something we seek to emulate, with lessons in their current high value industrial boom for Government and industry alike. "Conversely, the recent crisis in Ireland has highlighted how dangerous our dependence on established markets can be. Even when these markets return to stability they will not offer the substantial opportunities for growth presented by many developing nations. As Germany sees its products move at an increasing pace into emerging markets, the UK should again be looking closely at ways to replicate this success." However, others warned there would be challenges in sustaining the growth into 2011 with exports to developed countries holding the key.