none

UK MANUFACTURING OUTPUT SLUMPS

12-04-2016
by 
in 

Britain's industrial sector suffered its biggest slowdown in over two years as output in the manufacturing sector fell sharply, according to new industry data.

Office for National Statistics (ONS) figures show industrial production in the UK fell 0.5% year-on-year in February, compared with a 0.2% gain in the previous month.

The figure marks the biggest slowdown since July 2013.

The ONS attributed the downturn to a dismal display across the board, which saw declines in two of the four main sectors.

Manufacturing, the largest component of production, was the main contributor to the drop, as output fell 1.8% year-on-year, recording its largest decline since July 2013.

On a month-on-month basis, industrial production fell 0.3%, reversing the 0.3% gain posted in January and falling short of analysts' expectations for a 0.1% gain.

Meanwhile, on a monthly basis, manufacturing output fell 1.1% in February, with production falling in 11 of the 13 manufacturing sub-sectors.

Iron and steel manufacturing exerted one of the biggest drags, as output dropped by 37.7pc in February compared with a year ago.

If Britain's economic recovery is to continue, the services sector will have to generate growth following the disappointing figures from the industrial sector but economists warned the outlook was not positive.

"The industrial slump places more of the onus on the services sector to drive growth, but the weakness of the CIPS services PMI in both February and March suggests that all sectors now are struggling," said Samuel Tombs, Chief UK economist at Pantheon Macroeconomics.

James Warren, research fellow at National Institute of Economic and Social Research (NIESR), said: “The subdued growth in the first quarter of 2016 has been primarily driven by weakness in production industries, especially manufacturing.

“The volume of industrial production is currently 10.7% below its pre-recession peak of the first quarter of 2008, while GDP has now surpassed its pre-recession peak by 7%.”

Ruth Miller, an economist at Capital Economics, said the dire manufacturing figures and weak trade signalled a slowdown in growth in the first three months of the year amid Britain's "heavily unbalanced" recovery.

Related news & editorials

  1. coins
    12.05.2021
    12.05.2021
    by      In , In
    "From an industry perspective, the Government's second budget in a year locks in the recovery from recession and shifts gears from emergency measures to investing in the economy for the longer term," says Innes Willox, Chief Executive of the national employer association Ai Group.
    He described it... Read More
  2. apprentice
    12.05.2021
    12.05.2021
    by      In , In , In
    Liverpool Plains on the north-western slopes of New South Wales is a highly productive agricultural area. There are broad acre crops such as wheat, corn and sorghum, while dry-land and irrigated cotton crops thrive in the rich soil.
    Sheep graze in the hills surrounding Spring Ridge and the Caroona... Read More
  3. shaking hands graphic
    11.05.2021
    11.05.2021
    by      In , In
    Skills qualifications in manufacturing trades have undergone their biggest update in a decade, with the intention of developing a more productive workforce and one which has the skills required by today’s jobs. Developed by the Manufacturing and Engineering Industry Reference Committee, supported... Read More
  4. factory worker
    10.05.2021
    10.05.2021
    by      In
    A survey has found that while four out of five Australian workers feel optimistic about the next five years, only 30% of those in manufacturing feel the same way. It also found that 10% of Australian manufacturing workers reported losing their jobs last year. The findings were based on a global... Read More
Products
Suppliers