However, manufacturing output decreased by 0.1% in October 2015 compared with October 2014. The largest contribution to the decrease came from the manufacture of machinery and equipment not elsewhere classified, which decreased by 15.3%.
And, although total production output in October 2015 is estimated to have increased by 0.1% compared with September 2015, manufacturing output decreased by 0.4%. The largest contribution to the decrease came from other manufacturing and repair, which decreased by 5.4%.
In the three months to October 2015, production and manufacturing were 8.9% and 6.1% respectively below their figures reached in the pre-downturn GDP peak in Q1 2008.
Zach Witton, deputy chief economist at EEF, said: “Today’s data marks a disappointing start to the final quarter of the year, with the lingering impact from the crude oil price on investment in the North Sea dragging some sectors down. Yet there was divergence across sectors, with pharmaceuticals benefiting from the recent end of the patent cliff, and solid domestic demand continuing to support motor vehicles.
“Looking forward, industry will remain under pressure from the low oil price and weak export demand flowing from slower growth in emerging markets. While the Chancellor’s recent Spending Review will have been seen as supportive to manufacturing, today’s data highlights that it is critical government continues to act to ensure the UK is a competitive location for manufacturing.”
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