Highest Value In 10 Years Reported By The Manufacturing Output In The U.K.

November was the seventh consecutive month when there was growth in the UK manufacturing output and the speed of growth is the fastest rate since early 2008.

There was a growth of 3.9 percent in manufacturing output for November compared to the same period last year and was driven by cars for exports, aeroplanes, boats and renewable energy projects.

There was a rise of 0.4 per cent in the industrial output according to official figures.

There was a drop of 2 percent in the three months to November for construction output in comparison to the previous three months.

Except for a 1.2 per cent increase in new housing, the entire segment saw the largest quarterly fall since August 2012.

With energy supply contributing the highest in total production for the month of November, there was a 0.4 per cent increase in the total production compared to October figures.

Despite the fact that there had been a growth of 0.4 per cent in the UK economy in the three months to September, high inflation rates resultant from the drop in sterling following the Brexit voting caused an overall slowdown in the growth of the U.K. economy in the first nine months of 2017.

Even though the data for the manufacturing sector is encouraging, it needs to be mentioned that it constitutes only about 10 per cent of the total economy of the U.K.

A weaker currency and global growth are the two most important factors that are driving the British manufacturing segment.

UK exports have been more competitive by the fall in value of the sterling after the Brexit referendum.

And the USA, China and Europe which are considered to be the main growth engines for global economy are doing well all at the same time and this phenomenon is taking place for the first time since the financial crisis.

Lee Hopley, chief economist at manufacturers’ organisation EEF, said: “UK manufacturers were, in the main, in good shape as 2017 came to a close, with the majority of sub-sectors enjoying growth.

“Manufacturers’ expectations for the year ahead point to output and export growth being maintained through this year on the back of continuing support from a burgeoning global economy.

“This, together with an ongoing commitment from government to deliver on its industrial strategy, will be crucial in helping to propel the sector forward,” she said.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “The downturn in construction activity has been driven by new work in the private commercial sector, which was 5.4% lower in the three months to November than in the previous three months.

“Looking ahead, Brexit uncertainty is likely to continue to hit commercial projects, while the planned 4.5% decline in public sector investment in 2018/19 will additionally dampen the sector.”

(Adapted from BBC.com)

Advertisements


Categories: Economy & Finance, Sustainability, Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: