Manufacturing output remains resilient

The Office for National Statistics reported that out put for the latest month, April, rose by 0.1 per cent and featured a significant increase in output of 2.8 per cent in the transport equipment industries. There were no significant decreases. The more reliable three month figure showed an increase of 0.3 per cent compared with the previous three months and was 0.7 per cent higher than the same period a year ago. There were no significant increases but the largest non-significant rise was in the machinery and equipment industries, where output was up by 1.5 per cent. There were no significant decreases. Commenting on today’s data, Barclays Commercial Bank’s National Head of UK Manufacturing Ray O'Donoghue said although the figures showed growth over the quarter, April had been only just a positive month. “Following last month’s large drop this is a welcome move in the right direction but manufacturers will still feel under pressure thanks to rising inflation,” he went on. “Raw material cost and factory gate prices have reached record levels. The increase was largely due to increasing fuel and food products and has sparked further concerns about inflation and how this will inevitably feed through into consumer prices as manufacturers look to try and pass these on. “The real winners will be those that have developed their brand so are in a stronger position to protect margins and those looking at cost structures early. UK manufacturers are resilient and dealing with these kind of cost issues is what they have become well use to and do very well.”