While it has been reported that the manufacturing sector has enjoyed the best trading conditions it has experienced in the last decade, as a consequence of increased global consumer confidence, latest figures from the Office of National Statistics reveals that manufacturing output actually fell in the month of May.
Harvey Bridges, chief economic advisor to the Federation of Engineers and Manufacturers, comments: “While we did experience an increase in consumer demand over the last three months industrial output has not increased to the expected levels. This is a consequence of a number of factors; the impact of a weak pound on exports and the fact that many industry experts overestimated the impact destocking would have on the industry.”
Among the most solvent sectors of manufacturing are the machinery, technical equipment and interestingly, the car manufacturing sector. It was thought by many that once the government scrapped its support schemes that the motoring sector would suffer indefinitely, however, according to these figures this is not the case.
Bridges concludes: “Overall it seems that our economic recovery remains anemic and if we are to remain buoyant the government must come up with some strategies to stimulate spending.”