Manufacturing output up as UK recovery continues

Manufacturing output rose 1.9% in June, its strongest growth since 2010 and more than double the expected rate according to the Office of National Statistics.

Manufacturing output up as UK recovery continues

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Manufacturers reported a rise in output across all sectors, despite a drop in oil and gas extraction and a fall in energy output. Transport equipment saw the biggest increase in output at 5.3%.

The positive figures follow strong retail and service results earlier in the week, indicating a return to growth for the UK economy.

The July heatwave pushed retail sales to their fastest growth for seven years, resulting in the third consecutive month of growth in the sector. Sales were up 2.2% on a like-for-like basis according to the British Retail Consortium.

Food and drink saw the highest growth since November 2009, while health and beauty sales were spurred by the increase in demand for sun creams and hayfever remedies.

The service sector, meanwhile, also rose significantly during July and at a greater pace than expected. The Services Purchasing Managers’ Index rose to 60.2 in July from 56.9 the month before, marking it its fastest pace of expansion since December 2006.

Analysts are warning against over-excitement however, as industrial production remains 13% below pre-crisis levels and manufacturing is almost 9% lower.

 

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