Manufacturing output

Manufacturing News, Source : The Manufacturer
Published : 09 Feb 2006 12:09

Manufacturing output fell by one per cent in the fourth quarter of 2005, with seven out of the thirteen subsectors showing decreases in output, four showing increases and two subsectors remaining unchanged.

A significant drop in output was seen in the transport equipment industries, where output fell by 4.6 per cent. Output in the electrical and optical equipment industries fell by 2.7 per cent and in the paper, printing and publishing industries it slipped by 1.6 per cent. The only significant increase in output during this last quarter was of 1.5 per cent in the machinery and equipment industries.

Overall production output decreased by 0.8 per cent during this same period.

There was a slight silver lining to the cloud, however. Between November and December, manufacturing output increased by 0.3 per cent. The rise was spread across nine of the thirteen subsectors while a fall was experience in just four subsectors.

The only significant increase, 1.5 per cent, was recorded in the chemicals and man-made fibres industries and the only significant decrease came in the electrical and optical equipment industries which were down by 1.8 per cent. Meanwhile the overall Index of Production increased by 0.2 per cent between November and December.

For 2005 as a whole, production industries' output was 1.7 per cent lower than in 2004. Within this, manufacturing output decreased by 0.8 per cent in 2005 compared with 2004.

Commenting on these figures, Andy Martin, national director of manufacturing at Barclays, said: "The consecutive month-on-month rise is encouraging, and reflects a resilient performance by UK manufacturers against a backdrop of increasingly tough cost conditions. If energy costs in particular continue to rise, the sector will face further pressure on margin levels, but we are confident it can respond to this challenge."

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