Uk Manufacturing Faces Major Challenges
06 November 2012 in Chamber News
Manufacturing output for September 2012: +0.1% on the month, -1.0% on the year
Commenting on the news that manufacturing rose only 0.1% in September according to data published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce, said:“The manufacturing figures are disappointing and slightly worse than expected. The wider industrial production figures are also bleak, even though special factors relating to oil and gas production played a role. On the basis of these figures, there is a distinct possibility that the Q3 GDP figures, initially estimated to increase by 1.0%, would be revised down slightly to show a rise of only 0.9%.
“Longer term trends in manufacturing still show a decline over the year and prospects over the month ahead are challenging. In the face of tough fiscal austerity at home and difficult problems facing our trading partners in the eurozone, manufacturers and businesses in other sectors will have to adjust to a difficult reality of weaker growth prospects.
“In spite of these difficulties, British businesses have the talent and ambition to make progress, but the Government must do more to help them fulfil their potential. While continuing to reduce the deficit, more forceful action is needed in key areas such as deregulation, support for exporters and improving access to finance through the early establishment of a business bank.”