Manufacturing data paints strongest picture for 16 years

Commenting on the figures, Barclays Corporate's head of manufacturing, transport and logistics Graeme Allinson, said: "The ONS figures show the sector is continuing its excellent progress, albeit at a somewhat higher rate than most market commentators were expecting. There is, however, a sense of anticipation ahead of the Comprehensive Spending Review; although this month's announcement is unlikely to provide much immediate clarity as more than half of all goods manufactured in the UK are for export." Output increased in 10 of the 13 sub-sectors and fell in three sub-sectors. The largest contributors to the rise were the machinery and equipment industries, which rose by 16% and the food, drink and tobacco industries, which increased by 7.7%. The largest negative contribution to overall output was a decrease of 0.8%t in the chemicals and man-made fibres industries. Between July and August, manufacturing output increased by 0.3%. Output increased in nine of the 13 sub-sectors and fell in four. The largest positive contributions to overall output were increases of 2.3% in the food, drink and tobacco, 1.9% in the transport equipment industries and 2% in the other manufacturing industries. The largest negative contribution to overall output was a decrease of 1.8% in the paper, printing, and publishing industries.