Manufacturing output continues to defy credit crunch

Commenting on figures, Ray O'Donoghue, national head of UK manufacturing at Barclays Commercial Bank, said they made promising reading for UK manufacturers. “With the continued growth in countries such as China, India and Eastern Europe, the UK's manufacturing sector has seen these new markets as an opportunity to increase its export business and this is reflected in the level of its order books,” he went on. “Export led growth has been further supported by the competitive level of sterling and should help protect against any slowdown in domestic demand. The manufacturing industry is currently at its leanest and fittest, and seems well position to look after itself through the current changes in the economy. Today's figures are an indication that the industry's continued move from commodity manufacturing to value added manufacturing is really paying off." In February output across the manufacturing industries rose by 0.4 per cent with widespread increases in sub sectors including the food, drink and tobacco industries where output increased by 0.5 per cent. In the latest three months to February, manufacturing output increased by 0.3 per cent and is now 0.9 per cent higher than the same three months a year ago. There were significant increases in output of 2.3 per cent in the transport equipment industries and 2 per cent in the chemicals and man-made fibres industries although output in the paper, printing and publishing industries fell 1.1 per cent.