Manufacturing output takes a tumble

Manufacturing News, Source : TheManufacturer.com
Published : 10 Apr 2007 9:01

Manufacturing output has taken its biggest tumble for 18 months, according to the latest official data.

Office for National Statistics figures show that between January and February, manufacturing output decreased by 0.6 per cent. Twelve of the industry’s 13 sub-sectors each showed a fall in output, the most significant being in the transport equipment industries where the drop was 1.3 per cent.

However, the usually more reliable three-month figure showed a more modest 0.2 per cent decrease over the months of December, January and February compared with the three months to November 2006. Seven out of the 13 sub-sectors showed decreases in output, five sub-sectors showed increases and one remained unchanged.

There were no significant decreases in the period although output did decreased by 0.8 per cent in the transport equipment industries.

Commenting on the figures, Tony Walsh, National Director of Manufacturing at Barclays, said:

"A very minor fall in production (0.2%) over the last three months won't have manufacturers running for cover. To put it into perspective output is actually 1.8 per cent higher than the same time last year.

"Once again, the freeze in UK interest rates will be a very welcome sight as the industry gets into its stride in 2007."

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