Manufacturing slump worse than expected, ONS figures show
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The decline in British manufacturing is greater than had previously been expected according to revised official UK manufacturing output figures from the Office for National Statistics (ONS).
However, despite figures showing that manufacturing output was down 0.5% rather than the 0.3% fall pencilled in last month, the fall is not expected to dampen growth in the wider economy.
Commenting on the downwardly revised data, Robin Johnson, partner and chair of industrial engineering at international law firm Eversheds, said: "The downturn in figures hasn't dampened the trend for improved margins that we have been seeing in the industrial sector recently. Exports remain strong but inevitably it is 'steady as it goes' as confidence still remains fragile. Most companies are cautiously optimistic and there is still a view that Europe will follow the US closely and build out of a low growth cycle next year."
The orginal ONS data found overall manufacturing output is still up 2.1% against last year. However production has now declined month on month on two separate occasions in 2011.
Output decreased in eight of the 13 manufacturing sectors, figures revealed. The largest contributors to the decrease were the transport equipment industries which decreased by
1.7% and the paper, printing and publishing industries which decreased by 1.2%.
The largest positive contribution to overall output was an increase of 4.1 per cent in the textiles and leather clothing industries.
