–Aug manufacturing output +0.3% m/m; +6% y/y; median +0.2;+5.8
–Aug industrial production +0.3% m/m; +4.2% y/y; median +0.3; +4.2

LONDON (MNI) – Manufacturing output rose for the fourth consecutive
month in August, leaving annual growth at its highest level for nearly
16 years, figures released by National Statistics showed Thursday.

Manufacturing output increased by 0.3% on the month and by 6% on
the year in August, above the median forecast for a rise of 0.2% on the
month and 5.8% on the year.

The rise in the year to August was the highest since December 1994
showing just how strong the recovery in the sector has been since the
downturn in the wake of the credit crunch. Output is now back to the
level seen in November 2008.

In the three months to August, output was up 0.7% compared with the
previous three months, slightly down from 0.9% in July.

Recent more up to date survey data from CIPS has shown activity
growth in the manufacturing sector weakening which suggests that growth
in the official series may start to ease over the coming months.

There were rises in 9 of the manufacturing sub-sectors on the month
in August, with 4 sectors posting a decline in output.

Significant gains during the month of August were seen in food,
drink and tobacco, transport equipment and other manufacturing. Falls
were seen in paper, printing and publishing, textiles and leather
clothing and machinery and equipment.

National Statistics said that the 6% increase in output seen over
the past year was due to strong increases in machinery and equipment,
food, drink and tobacco and basic metals.

The wider measure of industrial production increased by 0.3% on the
month and was up 4.2% on the year, the largest annual rise since
December 1994. The outturn was in-line with the median forecast from
City economists.

Output of the electricity, water and gas industries fell 0.3% on
the month while mining and quarrying output rose 0.4% on the month due
to a 0.5% rise in oil and gas output.

–London newsroom 4420 7862 7491 email: drobinson@marketnews.com

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