UK manufacturing records healthy growth in July
09 Sep 2010
UK manufacturing grew at a healthy pace in July, official data showed yesterday, but economists say a slowdown in both manufacturing and the broader economy looks inevitable.
Factory output was up 0.3 per cent on the month, keeping pace with June and May and continuing its recovery from last year's deep recession, which saw annual growth up at 4.9 per cent, the highest since December 1994.
However, the effect of austerity measures and slow growth of the global economy would make the pace hard to sustain.
According to analysts though the figures look good for the moment it would be quite difficult to achieve the same rates of growth moving ahead.
The broader measure of industrial output was also up 0.3 per cent on the month, with recovery from a 0.5 per cent drop in June caused by an early start to oil rig maintenance. According to the statistics office there remains scope for further gains as more oil rigs return on stream in August.
A recovery in oil production would however not help much to counter the broader economic headwinds and the government was careful not to boast.
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