none

UK manufacturing output in shock fall

14-07-2014
by 
in 

Manufacturing output in the UK recorded a surprise fall of 1.3% in May, the biggest decline since January 2013.

According to BBC News, the figure from the Office for National Statistics (ONS) was much weaker than economists' forecasts of an increase of 0.4%.

Manufacturing data and surveys so far this year have indicated that the sector is growing robustly.

The wider measure of industrial output also fell in May, the ONS figures showed, dropping by 0.7%.

Compared with a year earlier, manufacturing output was up 3.7% in May, down from April's increase of 4.3%, while annual growth in industrial output slowed to 2.3% from 2.9%.

May's decline in output echoes a similar stutter in German industrial production, which fell 1.8% in May, figures released on Monday showed.

David Tinsley, UK economist at BNP Paribas, described the results as a "heavy dose of reality" after a run of upbeat economic data.

"It is quite possible that the fall today reflects some erratic/seasonal influences," Mr Tinsley said.

"It is noteworthy that German industrial production was similarly surprisingly weak yesterday. It could be production plans were affected by the relative lateness of Easter."

Jeremy Cook, chief economist at currency company, World First, said the results were "puzzling."

"This is the first decline in six months for UK factory output and calls into question just how strong the balancing act of UK growth really is."

In May, the Bank of England predicted that the UK's economic growth would begin to slow in the second half of 2014, but governor Mark Carney said recently there were few signs of this happening.

Related news & editorials

  1. 23.04.2018
    23.04.2018
    by      In
    Sidewood Estate has put the finishing touches on it $4 million winery expansion in the South Australian town of Nairne, which includes one of the most technologically advanced bottling lines in the Adelaide Hills region.
    The bottling line can fill and label up to 3000 bottles per hour with an... Read More
  2. 23.04.2018
    23.04.2018
    by      In
    BAE Systems has formalised a deal to source almost 50,000 tonnes of Australian steel to build Future Frigates for the SEA 5000 programme, should it win the tendering process. 
    Under the agreement, Bluescope Steel and Liberty OneSteel will provide steel components for BAE's Global Combat Ship-... Read More
  3. 23.04.2018
    23.04.2018
    by      In
    Melbourne-based packaging giant Visy is aiming to rapidly increase its investments in automation, with the end goal of having a fully automated factory. 
    “We have a vision which I call the ‘lights out’ factory - a fully automated box factory that operates in the dark because robots don’t need... Read More
  4. 23.04.2018
    23.04.2018
    by      In
    With international electric vehicles failing to make an impression on the Australian market, a local manufacturer has stepped up to the plate to provide some much-needed competition. 
    ACE Electric Vehicles is planning to produce Australian-manufacturered electric cars, with the goal of releasing... Read More