Manufacturing ‘firmly on the road to recovery’

This is the strongest picture since the early stages of the recession in February 2008 and indicates that the UK manufacturing industry is firmly on the road to recovery. Commenting on the figures, EEF chief economist Lee Hopley said: "The strong rebound more than reversed the dip in January, confirming that a recovery across the sector is firmly back on track. Better economic prospects in key markets and a weaker currency should ensure that Industry will be increasingly well placed to play a leading role in an export led recovery." Eight of manufacturing's 13 sub-sectors showed growth with the largest contributions coming from the transport equipment industries and the food, drink and tobacco industries; increasing 16.9% and 2.8% respectively. The chemicals and man-made fibres industries showed the biggest decline at 5.1%. The February figures also indicate month on month growth in 11 of the 13 sub sectors. Overall manufacturing output increased by 1.3% over the previous month, the largest gains coming from the electrical and optical equipment industries, non metallic mineral products industries and food, drink and tobacco. At Barclays, head of UK manufacturing, transport and logistics Graeme Allinson said: "Today's figures confirm recent indications, both in the UK and internationally, that manufacturing is getting back on track. We have seen a pick-up in applications for M&A (merger and acquisition) funding as companies are looking to press ahead with deals, reflecting their underlying confidence in the sector's burgeoning recovery". Allinson also added that the weak pound had given UK-based manufacturers a competitive advantage in increasingly competitive export markets.