Manufacturing helping to slow shrinkage in UK economy

New official figures from the Office for National Statistics (ONS) showed that in the second quarter of 2009, UK gross domestic product (GDP) fell by a less than expected 0.7% compared with the previous quarter although the level of GDP is 5.5% lower than the same quarter of 2008. Between quarter one and quarter two of 2009 the volume of output in the production industries fell by 0.6%, within which manufacturing fell by 0.2%. Output of the service industries decreased by 0.6% while construction output is estimated to have fallen by 2.2% David Raistrick (pictured), UK manufacturing leader at Deloitte said the ONS report showed that the economy had shrunk less than expected and demonstrated how the upturn in the manufacturing and automotive sectors was contributing to a recovery in the UK. He went on: "While both the manufacturing and automotive sectors still face very challenging environments, recent reports suggest that the industries may have passed the worst and are on the slow road to recovery. "Recent manufacturing production figures were the most positive they have been in over past 12 months and new car production and registration figures have surged due to the scrappage scheme. "While the UK is still behind other European countries such as France and Germany in exiting the recession, it is hoped that we will be next to follow. Evidence from other strong manufacturing countries such as Germany and Japan demonstrate the critical importance of industry to economic recovery. Further stabilisation in the UK manufacturing and automotive sectors will play an important role in our recovery."