UK manufacturing output ‘flat’, according to official data

Although output fell by 0.9 % in March 2012 compared with its position a year ago, the month on month picture showed it rising by 0.9% in March 2012 compared with February . The rising star of the month was the chemical industry, up 5.6%, while production in the manufacture of wood and paper products industries fell by 2.3%. Andrew Johnson, senior economist at EEF, said the data painted a slightly improved picture for manufacturing, bringing the official data closer to a range of business surveys. "This suggests manufacturing is in a better position at the start of this year than it was at the end of 2011," he commented. "However, the challenges clearly remain formidable, especially with regard to major European markets." The mixed picture across individual sectors suggested manufacturing was still some way from establishing a strong and consistent growth path, he concluded. Chris Williamson, chief economist at Markit, said: "Manufacturers are struggling in the face of the steep downturn now evident in their main export market, the eurozone, and a slowdown in China. The US has been something of a bright spot for exporters, but even there signs have appeared to growth weakening. At the same time, demand at home clearly remains very subdued amid ongoing low levels of business and consumer confidence. There appear to be very few sources of new sales growth for UK producers at the moment. "The recent appreciation of sterling is adding to their plight, making exports more expensive and making imports cheaper alternatives to UK-produced goods."