Manufacturing output falls
Jun 11 2010
Industrial production fell by 0.4 per cent in April, after four consecutive monthly rises, according to official figures.
Douglas McWilliams, chief executive for the Centre for Economics and Business Research, says: ‘the bounceback from destocking has been not quite as strong as had been expected and exports are being boosted slightly less from the weak pound than had seemed the case a month ago.’
Motor manufacturing, machinery and equipment production are the most buoyant sectors, up around 10 per cent in the past year.
McWilliams adds: ‘Looking forward, this and other reports suggesting that the recovery remains weak will probably encourage the MPC to keep rates down for the foreseeable future.'
Howard Archer, chief UK and European economist at IHS Global Insight, says UK manufacturers will be ‘desperately hoping’ that the Eurozone debt crisis could push the UK back into recession.
However, the figures come following news from the industry body the Engineering Employers Federation that
manufacturers enjoyed buoyant trading conditions in the last three months, with output and order activity increasing by the highest rates since 1995.