Manufacturing output figures underline sector's fragility

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Manufacturing News, Source : TheManufacturer.com
Published : 12 Mar 2007 9:09
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The fragile nature of manufacturing’s recovery was undelined by the latest government output figures which show the year kicking off with a 0.2 per cent fall for the month of January.

The rather more stable three month figure for the period to January showed manufacturing output increased by 0.1 per cent, compared with the three months to October 2006.

Commenting on the figures, Barclays National Director of Manufacturing Tony Walsh said they confirmed a quiet start to the year with little change in terms of output.

“Viewed in isolation, one could be forgiven for thinking things are a little stale, but this is far from the case and conditions can change quickly,” he said.

“Whilst many would have been buoyed by the recent freeze in UK interest rates, the volatility of global stock markets, as witnessed by the recovery of the US dollar, means UK manufacturers must never lose sight of the fact that they are playing in a global marketplace and their business decisions and attitudes must always reflect this.”

The 0.2 per cent January fall saw 10 of the industry’s 13 sub-sectors showing decreases in output, two increased and one remained unchanged. Within the widespread falls seen on the month there were no significant decreases. However, there was one significant increase in output on the month in the machinery and equipment industries, where output increased by 1.7 per cent.

Over the three months, eight out of the 13 sub-sectors showed increases in output and five sub-sectors showed decreases. There were no significant increases in those three months but the largest non-significant rise was in the food, drink and tobacco industries, where output increased by 0.6 per cent. There was a significant decrease in the chemicals and man-made fibres industries, where output decreased by 1.1 per cent.