UK manufacturing output falls for the first time in months
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UK manufacturing output shifted into reverse in December with the process industries leading the first negative movement in eight months, according to official figures published by the Office for National Statistics today (10 February). The fall confounded economic forecasts of a 0.4% rise in output as analysts put down adverse early winter weather as a contributory cause.
Between November and December, manufacturing output decreased by a marginal 0.1%, decreasing in seven of the 13 sub-sectors and rising in six. The largest negative contributions to overall output were decreases of 3.2%t in the chemical and man-made fibres industries, 9.7% in the other non-metal mineral product industries and 2.8% in the machinery and equipment industries. The largest positive contribution to overall output was an increase of 2.8% in the paper, printing and publishing industries.
However, year-on-year total manufacturing output increased by 4.4 per cent in December 2010 compared to the same month in 2010. The basic metals and metal products industries, (up 15%), food, drink and tobacco (up 8.8%), and machinery and equipment (up15.2%), led the way. The largest negative contribution to overall output was a decrease of 10.9% from the chemical and man-made fibres industries.
EEF chief economist Lee Hopley commented: "Despite the modest dip in which was confined to a limited number of sectors there is nothing to suggest the upturn seen over the past year has gone into reverse. Manufacturing will continue to outperform the rest of the economy and drive the right type of growth from investment and innovation. It now needs a growth strategy from government to cement the gains over the long term."
