Non-financial UK firms jump in profitability

Oliver Smith
Follow Oliver

FINANCIAL sector British companies involved in manufacturing, services and oil exploration industries saw their profitability increase during the third quarter of 2013.

The Office for National Statistics (ONS) said that non-financial corporations’ profitability, as measured by their net rate of return, was 11.3 per cent during the quarter, higher than the second quarter but lower than 2011 levels.

“The gross operating surplus – or company profits – of UK private non-financial corporations in the third quarter of 2013 increased by 3.6 per cent in current price terms, after removing the alignment adjustment,” the ONS said in a report yesterday.

Manufacturing companies were surprisingly strong during the quarter with profitability at 9.5 per cent according to the ONS, which, along with the fourth quarter 2012, is the highest level since the second quarter of 2011.

Services companies saw similar strength with a net rate of return of 14.4 per cent, the highest level in recent years, but still below the rates seen between 2003 and 2008.