We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Sharp Oct dip in UK manufacturing

Economists bemoan a "dire" and "diabolical" 1.3% monthly decline

Article comments

UK manufacturing output fell 1.3 percent over October in month-over-month terms, the Office for National Statistics (ONS) said on Friday.

The statistics body said a dip in food and drink output, specifically beer brewing, was behind the post-Olympics output decline. The latest monthly figure from the ONS is the worst fall since June when extra public holidays for the Queen's Diamond Jubilee impacted production.

On an annualised basis, October's output decline rate came in at 2.1 percent over the same month last year. Production of alcoholic beverages, especially beer, was down 10 percent from September, and 16 percent on an annualised basis.

Sharp falls were also recorded in ammunition, coke and petroleum distillates production. Additionally, the ONS said the UK's seasonally adjusted index of production fell by 3 percent in October compared with a year ago; the 19th successive monthly fall on the same month a year ago.

Howard Archer, chief economist at IHS Global Insight, described the figures as "dire."

"It is only too apparent that manufacturers are facing a tough environment. Domestic demand for manufactured goods is handicapped by current muted investment intentions and tightening public spending. Furthermore, the current uncertain and still difficult economic environment is probably causing some orders to be delayed or even cancelled," Archer told CFO World.

Meanwhile, muted global economic growth and Eurozone economic weakness, in particular, is limiting overall foreign demand for UK manufactured goods. Alan Clarke, UK economist, at Scotiabank said, "Manufacturing was diabolical. Sadly, I think there is not a lot to suggest that it is temporary. Survey data has remained fairly downbeat."

Earlier, in the government's autumn statement, chancellor of the exchequer George Osborne admitted that the UK economy would shrink by 0.1 percent this year.



Sharp Oct dip in UK manufacturing
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Co-operative Group posts £2.5bn loss

Annual loss the worst in its 150 year historymore ..

Google sees 19% rise in Q1 revenue

However, company missed analysts' expectation as ad prices slidmore ..

Starbucks to move Europe HQ to UK

Coffee chain says move reflects growing importance of UK marketmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *