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UK Manufacturing Data Shows Strength

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UK Manufacturing Data Shows Strength

The British National Statistics office has just published this month’s Industrial and Manufacturing Production data.

Industrial Production (year-on-year) came in at 2.7%, this is against a consensus figure of 2.2% and a previous reading of 2.9%. The monthly rise however is only 0.9% higher versus consensus of 0.3% and a previous of 0.1%.

Manufacturing Production (year-on-year) is significantly up, posting a figure of 3.8% easily beating the consensus expectation of 3.1% and also topping the previous reading of 3.3%. The month-to-month change in this figure is 1.0% against expectations of 0.3% and a prior month report of 0.4%.

The primary difference between these numbers is that the Industrial figure includes mining activities whereas the Manufacturing number is pure factory output. Nonetheless, these Industrial and Manufacturing figures are a key short-term indicator of the robustness of the British economy and are a major contributing factor to the country’s Gross Domestic Product figures.

Britain’s manufacturing sector is proving to be very strong and a major contributor to the country’s economic recovery. The British Chambers of Commerce (BCC) has published a quarterly survey that highlights the fact that Services Exports are at an all time high but that Manufacturing Exports are running a very close second, also at record levels.

The BCC report provided quite a comprehensive guide to the current state of the British economy, the key point being that growth has significantly picked up in the short term but that the economic recovery is becoming far to reliant on domestic consumer spending. Confidence in the UK’s prospects is encouraging consumers to run down their savings as they increase their purchases of large ticket items and particularly housing.

Based on this report the BCC made a very logical call to the Government asking that further credit be made available to the manufacturing sector in a bid to drive the export of more goods and in the process improve the trade balance situation.

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