Manufacturing output for May 2012 up 1.2% on the month, down 1.7% on the year
Commenting on the manufacturing output figures for May, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“While most expected the latest manufacturing output figures to record stagnation or a decline, they show resilience from manufacturers despite a difficult economic climate and a crisis in the eurozone. Taken together with the latest trade statistics, they show that pessimism about the UK’s economic prospects is unwarranted.
“Longer-term trends in manufacturing are still disappointing, and the global economy shows signs of slowing. Manufacturers are adjusting to a new reality with weaker growth prospects while the government continues with measures to reduce the deficit. But British businesses have considerable potential to make progress, even in tough circumstances. It is down to the government to help them realise this.
“The economy can move from a vicious to a virtuous circle. The government must create confidence and growth through aggressive deregulation, infrastructure spending, and the creation of a state-backed business to increase lending to new and growing businesses.”