Recovery keeps on going for UK industry in 2014
THE UK is set to be the fastest-growing economy in the G7 during the next quarter, outstripping Germany and the United States, according to a major official forecast.
The Organisation for Economic Co-operation and Development (OECD) said yesterday that they projected 3.3 per cent growth at an annualised rate both this quarter and next.
Germany is set to grow at 3.7 per cent in the first three months of the year, but fall back to 2.5 per cent in the third quarter. With US growth projected to be 3.1 per cent, and the Eurozone still lagging far behind, the UK will be the fastest growing economy of the advanced nations.
Official data yesterday also confirmed that the manufacturing sector continued expanding at the start of 2014, marking a robust 12-month rate of growth and suggesting that the recovery is broad-based.
Manufacturing production rose by a speedy 0.4 per cent between December and January, a 3.3 per cent rise on the year. General industrial production rose 0.1 per cent on the month and 2.9 per cent from a year ago.
Capital Economics’ Samuel Tombs added that production could pick up even further in months ahead, since oil and gas activity depressed the index: “January’s increase in overall production was depressed by a sharp 5.8 per cent monthly fall in production in the oil and gas sector.
“Anecdotal evidence suggests that severe weather conditions in the North Sea hampered production. As a result, oil and gas output should bounce back soon – indeed, it may be boosted for a few months if oil rigs try to make up for the production lost.”
Despite the growth, indices of production and manufacturing remain subdued in comparison to pre-crisis levels. Industry has suffered even in recent years, and output is below levels recorded in 2010 , almost a tenth lower than the previous record highs seen in 2006 and 2007.
Manufacturers’ organisation EEF suggested in their forecast last year that the manufacturing sector will outstrip the economy more generally this year.