Manufacturing output falls on weaker spending

According to official figures published today (9 September) there were widespread decreases in output, with significant decreases of 2.4 per cent in the food, drink and tobacco industries, 2.9 per cent in the electrical and optical industries and 4.2 per cent in the ‘other manufacturing industries not elsewhere specified’. There were no significant increases. The latest three months was 1.3 per cent lower than the same period a year ago. Ray O'Donoghue (pictured), head of UK manufacturing at Barclays said the drop in output suggested the weakening in consumer spending has started to feed through to production levels. “Sluggish UK demand is being compounded by a drop off in the US and Europe which is preventing exports from covering the shortfall in domestic orders,” he went on. “However, despite these pressures UK industrial confidence continues to run at a higher level than consumer confidence. Manufacturers who have experienced painful times before, are more prepared for these challenges, with leaner businesses, both in terms of how they run their working capital and production efficiencies. Manufacturers would be managing their order book more closely over the next few months, he concluded. The less robust one month figure for July’s output showed a decrease of 0.2 per cent with a significant decrease in output of 1.3 per cent in the electrical and optical equipment industries.