Manufacturing output increases by 1.8 per cent in May
The latest Industrial Trends report from the Confederation of British Industry (CBI)shows that both expectations of future output and orders have increased as inflationary and pricing pressures recede.
Thursday, July 07, 2011 12:58 PM
There was good news for the UK economy today as the latest manufacturing and industrial output data for May released by the Office for National statistics (ONS) showed the biggest increase in output for a year.
Manufacturing output increased by 1.8 per cent in May after falling by 1.6 per cent in April when output was lower due to the combined influences of Easter and the Royal Wedding public holidays.
The ONS also said that problems affecting the manufacturing supply chain as a result of the Tsunami and earthquake in Japan had diminished and also contributed to the positive growth in output.
However, the increase in May in industrial production which includes oil, utilities and gas, was not enough to offset the sharp fall of 1.7 per cent in April. Industrial production increased by 0.9 per cent, smaller than most experts expected and provides further evidence of the fragility of the economic recovery.
Howard Archer, from IHS Global said: “Overall industrial production saw a smaller rebound of 0.9% month-on-month in May after a larger dip of 1.7% in April as was held back by a sharp drop in oil and gas extraction. This means that industrial production will undoubtedly have suffered a marked drop in the second quarter.”
The manufacturing purchasing managers' index for June showed that growth in the sector had slowed and indicates that the manufacturing sector is still struggling and this increase recorded for May could be reversed in June.
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- industrial output
- office for national statistics
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