Commenting on the July manufacturing output figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:  

“The larger than expected increase in July manufacturing output supports our assessment that the third quarter of the year may show a return to economic growth. However, the manufacturing sector is still facing serious problems and longer-term comparisons show big falls.   

“The early stages of any upturn will be driven by a turnaround in stock levels, so it is important to maintain and reinforce the stimulus provided by quantitative easing. Recent falls in bank lending to non-financial firms are worrying and it may be necessary for the MPC to consider additional measures.”