Manufacturing output remains buoyant, ONS data shows

Output increased in eight of the 13 manufacturing sub sectors, the Index of Production showed. Transport equipment was the star performer with output rising over 13% in February 2011 compared to the same month last year. Car manufacturing was the biggest contributor the increase with a 22% rise, data showed. The machinery and equipment sector saw the second biggest output rises with a jump of 9% against 2010. However despite the strong growth against last year's levels, output remained flat for the first period of 2011, the ONS said. Output increased in four of the 13 sectors and fell in nine. The largest increases so far this year were again seen in transport equipment and machinery and equipment sectors. The biggest declines were seen in 'other manufacturing industries' and the chemicals and manmade fibres industries. The ONS data indicated a continued resurgence in manufacturing, a leading economist said. Jeegar Kakkad of the EEF said: "The recovery in manufacturing remains on track, driven by high-value, export-oriented engineering sectors." But, Kakkad stressed caution over future growth. "Maintaining this momentum in the face of substantial rises in commodity and component costs, continued volatility in key EU markets and tensions in the Middle East will be the central challenge facing UK manufacturers in the coming months."