Manufacturing output down 1.3 per cent

7 December 2012
By Sofia Mitra-Thakur
Mobile version
Share |
The ONS said factory output fell 1.3 per cent in October

The ONS said factory output fell 1.3 per cent in October

New figures show a steeper-than-expected drop in manufacturing output, fuelling fears that the UK is facing a renewed slump this quarter.

The Office for National Statistics (ONS) said factory output fell 1.3 per cent in October, far worse than the 0.2 per cent decline that analysts had been expecting.

The wider measure of industrial production fell 0.8 per cent, reflecting a record fall in oil extraction although this was partly due to maintenance on North Sea rigs.

The decline adds to the recent flow of disappointing numbers for the UK economy at the start of the fourth quarter and bodes ill for GDP after a rise of 1 per cent in the autumn ended the longest double-dip recession since the 1950s.

Markit chief economist Chris Williamson said: "Judging by the official data that we have seen for the fourth quarter so far, notably retail sales, trade and industrial production, the UK will struggle to avoid a renewed downturn in the economy after the brief return to growth seen in the third quarter."

The Office for Budget Responsibility this week slashed growth forecasts for the next five years and predicted a borrowing bill some £84 billion higher than its last estimate.

Mr Williamson added: "While a dip back into contraction may prove mild and short lived, the concern is that any new downturn will not only put further pressure on the UK's AAA credit rating but also provide a further set-back to a much needed improvement in business and consumer confidence."

The ONS said production was 3 per cent lower in October than the same month a year earlier while the figure for manufacturing fell by 2.1 per cent.

Samuel Tombs, of Capital Economics, said it seemed likely that industry will make a significant negative contribution to GDP in the fourth quarter.

He said: "Even if October's fall in production is reversed over the next two months, the sector will knock about 0.3 per cent off quarterly GDP growth.

"And we expect production to fall further in 2013 as the eurozone's recession deepens and high inflation holds back domestic consumer demand for manufactured goods."

Latest Issue

E&T cover image 1604

"Should the UK's engineers be in or out of Europe? The IET sets out its official position on the EU referendum this week - will you agree?"

->

E&T jobs

  • Senior Programme Manager

    Network Rail
    • England, London
    • £76800 - £86400 per annum

    Do you possess a track record of taking the lead on large projects?

    • Recruiter: Network Rail

    Apply for this job

  • Professor and Head of the Department of Electrical and Computer Systems Engineering

    Monash University
    • Australia (AU)

    Shape the future direction of a Department which is currently involved in ground breaking innovative research

    • Recruiter: Monash University

    Apply for this job

  • Rail Engineer

    Frazer-Nash Consultancy Ltd
    • Burton, Dorking, Glasgow
    • £ Competitive + Benefits

    Some of the most exciting infrastructure projects in the UK over the coming years are in rail.

    • Recruiter: Frazer-Nash Consultancy Ltd

    Apply for this job

  • Electrical Power & HV Engineers

    Frazer-Nash Consultancy Ltd
    • Bristol, Burton, Glasgow, Gloucester, Plymouth, Warrington
    • £ Competitive + Benefits

    Frazer-Nash is currently embarking on a period of significant growth of our electrical, electronics, control and instrumentation capability.

    • Recruiter: Frazer-Nash Consultancy Ltd

    Apply for this job

  • Control and Instrumentation Engineers

    Frazer-Nash Consultancy Ltd
    • Bristol, Burton, Dorchester, Glasgow, Gloucester, Plymouth, Warrington
    • £ Competitive + Benefits

    Frazer-Nash is currently embarking on a period of significant growth of our electrical, electronics, control and instrumentation capability.

    • Recruiter: Frazer-Nash Consultancy Ltd

    Apply for this job

  • Engineering Open Days

    Atkins
    • Bristol, Epsom and Birmingham

    Meet your new team!

    • Recruiter: Atkins

    Apply for this job

  • Engineering Manager

    Crich Tramway Village
    • Crich, Derbyshire
    • £40,000 PA

    The post holder will be a qualified electrical engineer and have experience in running a workshop and extensive project management skills.

    • Recruiter: Crich Tramway Village

    Apply for this job

  • CONNECTIONS DESIGNER

    SSE
    • MELKSHAM, NEW FOREST, OXFORD, POOLE, PORTSMOUTH, READING AND SLOUGH
    • £33,520 TO £49,645 (SSE7/8) DEPENDING ON SKILLS AND EXPERIENCE

    Due to continued growth, we are looking to recruit a number of Connections Designers in to existing network offices in South Central England.

    • Recruiter: SSE

    Apply for this job

  • Junior PLC Software Engineer

    Siemens
    • Gatwick

    Designs and develops controls SW, prepares engineering calculations, performs analyses and supports factory acceptance tests

    • Recruiter: Siemens

    Apply for this job

  • Electrical Engineer

    Premium job

    Scottish Prison Service
    • Edinburgh, City of Edinburgh
    • £40,654 to £48,579 plus annual supplement of £10,000

    Build Your Engineering Career. The Scottish Prison Service (SPS) is an Agency of the Scottish Government, working in partnership.....

    • Recruiter: Scottish Prison Service

    Apply for this job

More jobs ▶

Subscribe

Choose the way you would like to access the latest news and developments in your field.

Subscribe to E&T