Total production output is estimated to have increased by 0.4% in April 2015 compared with March 2015. However, manufacturing output decreased by 0.4% in April compared with March. The largest contribution to the decrease in manufacturing came from basic pharmaceutical products and pharmaceutical preparations.
In the three months to April 2015, production and manufacturing were 9.5% and 4.4% respectively below their figures reached in the pre-downturn gross domestic product peak in quarter 1 (Jan to Mar) 2008.
The Index of Production (IoP) is one of the earliest indicators of growth and it measures output in the manufacturing (the largest component of production), mining and quarrying, energy supply and water supply and waste management industries.
Lee Hopley, chief economist at EEF, the manufacturers' organisation, said: "The pace of growth in manufacturing has continued to slow on the back of weak oil and gas activity and a subdued picture in the UK's major export markets since the second half of last year. There are still bright sports, however, with consumer-facing sectors like transport equipment and food & drink, as well as chemicals, doing well.
"While challenging conditions remain, the recent increase in the oil price may boost investment in the sector and signs of an export pickup in April provide cause for optimism that growth in manufacturing will gradually become more broad-based."
Andy Hodgson, general manager – Motion Control, Digital Factory, Siemens UK and Ireland, added: "It's interesting to see the mixed picture presented by the latest IoP. While there have been increases in output across some sectors, it is still clear improvements can be made if we can crack the productivity puzzle.
"From a manufacturing perspective, we believe sustained productivity gains can be achieved through three key areas.
"Firstly, provision and support of the right education and training required for future growth and to meet the needs of a changing manufacturing marketplace.
"Secondly, investment assistance for new innovative digital and smart factories capable of tackling complex production and consumption challenges and finally, encouragement of innovation across the industry based on long-term strategic investment."
