Official figures report surge in UK manufacturing output

According to the Office for National Statistics (ONS), by far the largest contribution to the quarterly growth in overall industrial production came from manufacturing, which increased by 0.7% following a decline of 0.2% in the first quarter of the year. The year-on-year picture showed that manufacturing output was 2% higher in June 2013 compared with June 2012. In June alone, output rose by 1.9% with rises in all of its sectors. The highest contributor to the rise was the manufacture of transport equipment, including cars, which rose by 5.3% and contributed 0.7 percentage points to the monthly rise. Commenting on the IoP data, Lee Hopley, chief economist at EEF, said the June surge was the strongest since the end of 2010. She continued: "In contrast to the significant sector divergence we've seen in the data in recent years, all parts of manufacturing posted gains with chemicals, electrical equipment and transport showing particular strength over the past three months. "The production data gives further weight to the view that manufacturing activity will continue to gain pace, becoming a more important contributor to growth in the year ahead."