Industry grows but manufacturing slumps

stueyhants

http://business.timesonline.co.uk/tol/business/economics/article6986020.ece

I thought manufacturing was meant to be driving us out of recession. Not looking that good at the moment.

"The output from Britain's recession-hit manufacturers remained flat for a second successive month in November, official figures published today show, defying expectations of a recovery.

However, the figures for overall industrial production, which include output from oil and gas extractors, gained 0.4 per cent from October to November — slightly higher than expected — as the rising oil price encouraged energy companies to pump more oil.

Oil and gas extraction rose by 7.2 per cent, according to the Office for National Statistics (ONS), also helped by maintenance work that had depressed output in previous months coming to an end.

This further stiffened expectations that Britain's economy emerged from its worst recession for at least 50 years in the fourth quarter of last year.

Output fell in 10 of the 13 manufacturing sub-sectors, including machinery and equipment-making industries, and rose in only three.
The largest drop, of 29.2 per cent, came from manufacturing of machinery for mechanical power.

Year on year, Britain's production fell by 6 per cent and manufacturing by 5.4 per cent, ONS said.

Howard Archer, chief UK and European economist at IHS Global Insight, said: "It is evident that the manufacturing sector is still struggling to develop decent recovery after a largely dismal 2009.

"Serious doubts remain about the strength of demand for manufactured goods over the medium term, particularly once stimulative measures start being withdrawn.

"The further stagnation in manufacturing output in November is a telling reminder that the UK still faces a major challenge to develop significant, sustainable recovery."

The Centre for Economics and Business Research (CEBR) predicted that the economy would be sluggish in the first quarter of this year but said that it expected the manufacturing sector to benefit from an export boost between 2011 and 2013 on the back of sterling's weakness. "

Conrad

More nonsense from supposed economic experts.

The reverse will come to pass. No links, no graphs, sorry.
Give it 6 months...........

nollag2006

UK manufacturing has been declining for the past 30 years, so that's nothing new.

What is good to see though, is yet another bear admitting that the UK has come out of recession

:beer:

stueyhants

nollag2006 wrote: »

UK manufacturing has been declining for the past 30 years, so that's nothing new.

What is good to see though, is yet another bear admitting that the UK has come out of recession

:beer:

Sorry I must have missed the bit where it's been anounced we are out of reccession.

Thrugelmir

What manufacturing?

I thought manufacturing was meant to be driving us out of recession. Not looking that good at the moment.

Why do think Corus is shutting the steel plants at the end of this month ?

Mr_Mumble

Read this if you want to know why heavy industry will never recover in the UK:
http://www.bloomberg.com/apps/news?pid=20601085&sid=arUO3VRMDwUM

At least in the 1980s the fall of industry was down to 'high' wages and market forces. Now its because politicians prattle on about climate change (because shifting aluminium and steel production to the UAE or India really helps the environment?!)

Degenerate

It's exports that benefit from the cheap pound. That can just as well mean services as manufactured goods.

chucky

Thrugelmir wrote: »

What manufacturing?



Why do think Corus is shutting the steel plants at the end of this month ?

because it's cheaper not only to produce in China but also to ship it to its destination - alternatives are for the Corus staff to work at the same wage level as the Chinese...

Emy1501

Does anyone which industries are likely to take out of recession properly and get us the 1.25% growth this year and 3.5% next year? Are any of the industries showing signs of good recovery

doire_2

nollag2006 wrote: »

UK manufacturing has been declining for the past 30 years, so that's nothing new.

What is good to see though, is yet another bear admitting that the UK has come out of recession

:beer:

:rolleyes:

There you go again. Reading a post and coming to the conclusion of something totally different.

HAMISH_MCTAVISH

This further stiffened expectations that Britain's economy emerged from its worst recession for at least 50 years in the fourth quarter of last year.

And we emerged without significant improvement in manufacturing.

Britain has a diverse economy. We are still the 6th largest manufacturer in the world, and manufacturing is still a bigger slice of the pie than financial services, but it is a good thing IMO that we are not reliant on any one sector.