Manufacturing supports production growth

There were increases in 10 of the 13 manufacturing components compared with a year ago and the largest contributor was the manufacture of rubber and plastic products, and other non-metallic mineral products. Total production in August 2014 was flat compared with July 2014. Manufacturing output increased by 0.1% in August 2014 compared to July 2014. The main manufacturing components contributing to the growth between August 2014 and July 2014 were basic metals and metal products; other manufacturing and repair; and the manufacture of wood, paper products and printing. Compared with the pre-downturn GDP peak in Q1 2008, in the three months to August 2014, production was 9.6% lower and manufacturing was 4.4% lower. Lee Hopley, chief economist at EEF, said: "There are still signs of expansion across manufacturing but the pace of growth has shifted down a gear going into the second half of this year, with the weak industrial indicators coming from Europe likely to be a factor in explaining away some of the slowdown. "However, modest gains in the past three months across manufacturing conceal a divergence in performance by sector with more domestically oriented parts of manufacturing such as food and plastics and, the hardy transport sectors, leading the growth charge." She added: "Our forecasts still point to most sectors and manufacturing as a whole remaining on track for a stronger outturn in 2014 compared with last year."