Output down 0.3% as manufacturing feels the jitters
1 min read
Manufacturing output slumped 0.3% in August as the sector continued its jittery performance in 2011, Office for National Statistics (ONS) data has revealed.
Output has now declined month on month on three separate occasions this year.
Volumes decreased in seven of the 13 manufacturing sectors, figures showed.
Wood and paper product manufacturers were worst hit with a 3.2% fall against July. Metal manufacturing dropped 1.5%, the ONS data revealed.
The latest data cast doubt on whether manufacturers were seeking the right type of financial support to ensure long term growth, industry analysts claimed.
Mark Lee, head of manufacturing at Barclays Corporate said: "UK manufacturing is navigating rough seas and the question for banks, investors and businesses is whether the sector is securing the right type and sufficient funding to keep it afloat in the times ahead. Banks must keep up the flow of debt to the sector, but for many manufacturers it is long-term equity rather than debt that is in short supply."
Lee added: "There are clear opportunities for equity investors to inject growth capital into SME manufacturers. It is a question of whether investors will be willing to take these risks in a challenging market; the rewards could be all the more substantial when better times return."
However, there was some cheer for manufacturers. Food and drink producers enjoyed a 1% boost in output in August 2011 compared to July 2011,
A surge in demands for spirits from Asian countries had driven the rise according to the ONS.
Click the link below for the full ONS data
