Home Business News UK manufacturing output picks up in July

UK manufacturing output picks up in July


The UK’s manufacturing output grew at the fastest pace this year in July, according to official figures.Output rose by 0.5% in the month, the Office for National Statistics (ONS) said, as car production rebounded after declining in June.Recent surveys of the manufacturing sector have suggested that it is seeing a pick-up in orders and output.However, separate figures from the ONS indicated that there was little change in the UK’s trade deficit during July.The trade deficit in goods and services was barely changed at £2.872bn, while the deficit in goods widened slightly to £11.576bn, compared with June’s downwardly revised figure of £11.527bn.’Subdued’ yearA recent survey suggested growth in the manufacturing sector was accelerating, with output, orders and employment all picking up.In addition, earlier this week a study by the manufacturing body EEF said the sector was enjoying “buoyant conditions”, with export markets going from “strength to strength”Despite the improvement in manufacturing output in July, the ONS figures showed the wider measure of industrial output rose by just 0.2%, slowing from June’s increase of 0.5%.Kate Davies, ONS senior statistician, said manufacturing had remained “relatively subdued since the start of the year, though July showed the first significant monthly growth of 2017, with car production increasing partly thanks to new models rolling off the production lines”.Earlier on Friday, the British Chambers of Commerce (BCC) said the UK’s economy was “treading water” and there was “no sign on the horizon of a return to healthier levels of growth”.Its comments came as it tweaked its growth forecasts for the next few years. The BCC expects the economy to grow by 1.6% this year, up slightly from its previous prediction of 1.5%.However, it has cut its growth forecast for next year to 1.2% from 1.3%, and for 2019 to 1.4% from 1,5%.
Source: BBC