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Manufacturing declines at its slowest rate for six months

It’s a pity that the only good news says that things are still getting worse, but they are getting worse more slowly. But there we are. Between January and February, manufacturing output decreased by 0.9% compared to a 3% decline in January. Most forecasters were expecting a fall of about 1.5% so it appears that this really was good news. Can you see those green shoots of recovery yet?

 

Overall, manufacturing output decreased by 6.5% in the three months to February 2009 compared with the three months to November 2008 and was 12.2% down on the same three months a year ago. Manufacturing output actually fell for the 12th consecutive month.

Car production and sales continue to show a strong decline

Car production and sales continue to show a strong decline

 

The most significant decreases came in transport equipment – largely car production – which fell by 3.7% in the month and metal products which fell by 1.6%. The fall in car production has resulted from the fact that car sales in the UK have “fallen off a cliff”.  In March, car sales were down 30.5%,

 

Even though the value of sterling has fallen by more than 25% on a trade-weighted basis since the autumn of 2007 our manufacturing exporters are not taking full advantage of this yet, mainly because of the fall in domestic demand in our main export markets.

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Posted in Manufacturing, UK industry

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