Manufacturing output rises 0.6 per cent in October
08 Dec 2010
The UK's manufacturing output during October was up 0.6 per cent month-on-month, according to figures released by the Office for National Statistics (ONS). The rise is the biggest on a monthly basis since March and a significant improvement over September's 0.2 per cent figure.
Over a longer term view, manufacturing has emerged even stronger, growing 5.6 per cent over the three months to October as against the earlier – the strongest since 1994.
According to analysts, manufacturing is helping to boost the wider economy with demand recovering both at home and abroad, customers replenishing depleted stocks during the recession and the weak pound further supporting exports.
The latest data validates the picture of roaring activity projected by the recent Markit / Chartered Institute of Purchasing and Supply (CIPS) purchasing managers' index (PMI). In a survey, manufacturers projected the pace of growth to climb to its strongest in 16 years in November as businesses added staff at a record rate.
According to analysts, the strength of manufacturing does look genuine, given the surge in the manufacturing (PMI) over the past two months to a 16-year high. They add more robust growth numbers are expected over the coming months.
With manufacturing some way to go to regain lost ground after it contracted deeply in the recession, the profusion of positive data is strengthening hopes that the economy is in rebalancing from a focus on consumption towards exporting.
