Manufacturing growth hits peak

Harwich and Manningtree Standard: Manufacturing growth hit a three-year peak in April, the best year-on-year showing since February 2011
Manufacturing growth hit a three-year peak in April, the best year-on-year showing since February 2011

Growth in Britain's manufacturing sector jumped to a new three-year high in April after a 4.4% surge in output on the same period in 2013.

The performance was the strongest year-on-year showing since February 2011, adding to hopes that overall GDP accelerated in the second quarter.

The figures from the Office for National Statistics (ONS) showed an improvement in output of 0.4% compared with a month earlier.

It was the fifth period of month-on-month growth in a row - the longest run of continuous expansion since June 2010. Main contributors included transport equipment as well as computer, electronic and optical products.

Samuel Tombs of consultancy Capital Economics said the figures "add to the growing body of evidence suggesting the economic recovery might have gathered more pace in the second quarter".

Today's figures provide further evidence that the strength of the pound has not had as detrimental an effect on exporters as previously thought.

Markit chief economist Chris Williamson said: "Britain's factories are booming, enjoying their best spell of growth for four years.

"The data not only indicate that the recovery has strong momentum, but also that the economy is rebalancing, though there is still a long way to go before manufacturing even regains its pre-recession size."

Manufacturing remained 7.6% below its pre-downturn peak at the end of the first quarter of 2014.

David Kern, chief economist at the British Chambers of Commerce, said: "The Government must keep boosting efforts to support UK exporters and improve access to finance for growing firms."

A Treasury spokesman said: "Manufacturing grew at its fastest annual rate in three years in April. This provides further evidence that the Government's long term economic plan is working, laying the foundations of a broad based recovery."

Overall industrial production - which also includes sub-sectors such as mining and quarrying, electricity and gas output, and water supply - increased by 0.4% month-on-month in April as well. It grew by 3% year-on-year.

GDP grew by 0.8% in the first quarter, its fifth successive period of growth, as the economy recovers from the recession.

It was still 0.6% off its 2008 high at the end of March but is expected to surpass this during the current three-month period.

Comments (1)

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2:05pm Tue 10 Jun 14

southy says...

So on the whole the economy is in deep trouble, 0.4 increase and only a 4.4 up on 3 years ago, the adult working population as increase far greater the ONS that in the last 12 mths UK population as grown by 3%.
Its only the basics needs of life that as grown in the economy, and this will go up with the increase in the population, figures given are more like a stagnant economy.
Unemployment is increasing .
So on the whole the economy is in deep trouble, 0.4 increase and only a 4.4 up on 3 years ago, the adult working population as increase far greater the ONS that in the last 12 mths UK population as grown by 3%. Its only the basics needs of life that as grown in the economy, and this will go up with the increase in the population, figures given are more like a stagnant economy. Unemployment is increasing . southy
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