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Manufacturing output increased by 0.9 per cent in December compared to November, according to the Office for National Statistics (ONS).

Figures reveal a -1.9 per cent decline in the sector in December 2009 compared with December 2008, the slowest rate of year-on-year decline since May 2008.

David Kern, chief economist at the British Chambers of Commerce, says: ‘These figures are stronger than expected and reinforce hopes that 2009’s fourth quarter GDP growth will be revised upwards – possibly by even more than the ONS has indicated.
 
‘This improvement does not mean there is any room for complacency. Manufacturing declined sharply last year and annual growth is still in negative territory. It is important to support these positive trends in a way that will help reduce the UK’s trade deficit. The sector’s access to finance must be improved.’


According to the Society of Motor Manufacturers and Traders, car production improved by 58.5 per cent in December 2009 compared to the same month in 2008.

January figures for the manufacturing Purchasing Managers Index were the highest since October 1994. 

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