More bad economic news: Manufacturing output falls in August

Tuesday, 11 October 2011 01:31

Manufacturing output fell by 0.3 per cent in August, according the Office for National Statistics (ONS).

The fall was slightly higher than the 0.2 per cent that most analysts expected and follows a revised 0.2 per cent dip in July.

The latest figures mean that the manufacturing sector is likely to face a tough winter after starting of 2011 as an element of the economy that was relatively strong.

Dr Howard Archer, Chief UK & European Economist at IHS Global Insight said: A third successive fall in manufacturing output in August highlights the sector’s increasing struggles in the face of difficult domestic and global conditions. Furthermore, life looks likely to remain very challenging for manufacturers in the near term at least.”

Recent PMI surveys show that the manufacturing sector could claw back some of the previous two months falls in September, to contribute something towards third quarter GDP figures.

The manufacture of food, drinks and tobacco increased by one per cent in August and included a rise in the export of alcoholic spirits to Asia.

The wider measure of industrial production, including mining and utilities, increased by 0.2 per cent in August, a statistic that surprised experts.

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