Manufacturers struggle to hit pre-crisis levels
THE UK’S manufacturers suffered a drop in output in the April, according to figures released yesterday by the Office for National Statistics.
Manufacturing output was 0.4 per cent lower than in March, and only 0.2 per cent higher than in April last year.
Total industrial production – which includes mining and quarrying as well as manufacturing – climbed 0.4 per cent, but is only 1.2 per cent greater than the same time last year.
Both manufacturing and industrial production are below pre-crisis levels.
Lee Hopley, chief economist at manufacturers’ body EEF said the pace of manufacturing growth was slow due weak economic growth in the UK’s major export markets and weak investment in the oil and gas industry on the back of lower energy prices. But she believes these factors may be about to reverse.
“While challenging conditions remain, the recent increase in the oil price may boost investment in the sector and signs of an export pickup in April provide cause for optimism that growth in manufacturing will gradually become more broad-based,” Hopley said.
Martin Beck, senior economic advisor to the EY Item Club expects the UK economy to pick up from April to June, after it grew by just 0.3 per cent from January to March.
“Looking forward, prospects for production from April to June look fairly subdued and exporters face an additional burden from signs that the Eurozone’s recovery may already be losing steam. Notwithstanding their recent performance, the contribution of the ‘makers’ to this growth continues to look fairly uncertain.”