Interviews

Published

Manufacturing growth flattens in August

2 Mins

Manufacturing output rose a small 0.1 per cent in August, down from 0.3 per cent in July.

There remains, however, a strong upward trend, up 3.9 per cent from last year.

The wider measure of industrial output was unchanged.

This suggests that despite predications that the UK manufacturing is set to grow across the world, it is starting to slow.

However, the results represent the typical pattern for August, which slows down as seasonal maintenance is underway on oil rigs in the North Sea.

The level of manufacturing remains 4.4 per cent lower than it was pre-recession.

David Kern, chief economist at the British Chambers of Commerce (BCC) said: “Year on year growth for manufacturing and total industrial output is satisfactory, but the more recent figures show clear signs of a slowdown. 

“Manufacturing output eased between the first and second quarters of 2014, and the most recent figures show flat growth over the past three months – which points towards a further reduction for the third quarter of the year. 

“Total UK GDP is now 2.7 per cent above its pre-recession level, manufacturing output is still more than four per cent below its pre- recession level. The sector has maintained much of its skills base during the downturn, however, manufacturing exporters are facing many challenges in the face of weak demand in the euro zone and a sterling exchange rate, which has recorded net rises over the past year. 

“The manufacturing sector is now just over ten per cent of the total UK economy. It is still a very important driver of innovation export and investment, and its success remains crucial to a balanced UK recovery.”

Share this story

Do you pay your PA enough?
How to make your customers your ambassadors
Send this to a friend