British manufacturing output rises

British manufacturing output maintained a healthy pace of growth in July and industrial output recovered from a dip caused by…

British manufacturing output maintained a healthy pace of growth in July and industrial output recovered from a dip caused by an early start to oil rig maintenance in June, official data showed today.

Manufacturing output rose 0.3 per cent on the previous month, the same pace as the previous two months, lifting the annual rate to 4.9 per cent - the highest since December 1994.

Industrial output also rose 0.3 per cent, recovering from a 0.5 per cent drop in June and taking the annual rate to 1.9 per cent.

Both sets of figures were exactly in line with a Reuters poll forecast and confirm a picture of a strong rebound in manufacturing after heavy losses in 2008 and 2009.

However, recent surveys - particularly the purchasing managers index - suggest that momentum has slowed a little over the summer.

The three-month on three-month rate of growth in manufacturing eased to 0.9 per cent from 1.6 per cent, its lowest rate since February.

The statistics office said the monthly rise in industrial output was driven by increases in manufacturing and mining and quarrying and that there was scope for further gains as more oil rigs came back on stream in August.

Within the manufacturing sector the main rises were seen in the machinery and equipment, textiles and paper, printing and publishing categories. The main decline was in transport equipment.

Reuters