Manufacturing figures beat expectations

MANUFACTURING output fell in June but the figures were not as disappointing as forecast by many analysts.

The seasonally adjusted index of manufacturing fell 4.3% in June 2012 compared to the same month last year and was down 2.9% between May and June.

The Office of National Statistics said moving the second May bank holiday and the additional day off for the Jubilee celebrations were likely to have had an impact.

David Kern, Chief Economist at the British Chambers of Commerce, said: “Longer-term trends in manufacturing are still disappointing. Manufacturers and businesses in other sectors are adjusting to a more difficult reality of weaker growth prospects.

“But British businesses have considerable potential to make progress, and it is down to the government to help them fulfill this. As the government continues with steps to reduce the deficit, and problems in the eurozone continue, more action is needed to help the economy return to growth.”

The measure of industrial production more broadly mirrored manufacturing with a 4.3% fall on the year.

In manufacturing, wood and paper products saw the biggest fall in output year-on-year followed by metal products. Transport equipment saw the biggest increase at 8.4%.