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Positive figures for production
THE latest round of production figures show positive signs, but local businesses are not getting carried away and are looking instead for "long-term trends."
THE latest round of production figures show positive signs, but local businesses are not getting carried away and are looking instead for "long-term trends."That’s the view of Barclays Commercial Bank relationship director and manufacturing specialist for Peterborough Graham Martin on the Office for National Statistics’ ONS Index of Production statistics.
Over the last quarter, total production output has dipped by 0.6 per cent, but increased by 0.5 per cent between May and June.
In a similar upward movement, total manufacturing output fell by 0.2 per cent over the quarter, but between May and June it increased by 0.4 per cent.
The biggest fall was 3.7 per cent in the energy supply sector, while mining and quarrying and oil and gas shared the spoils for the best rises at 1.1 per cent.
Mr Martin said: “In the past few months we’ve seen production pass its worst point. However, experience tells us that there is no smooth road to recovery. Although today’s figures indicate a healthy move in the right direction, businesses that we talk to on a daily basis are watching for more long term trends around these statistics, pointing towards a sustained increase in demand.
“The general uplift in the economic markets parallels the positives coming out of the manufacturing sector and the real test of whether these figures are taking things in the right direction will be seen in the long term, not in the here and now.”
It is not only welcome news from the ONS figures, but also the Purchasing Managers Index (PMI) data for July, which has presented the first manufacturing expansion since March 2008, and importantly similar increases are visible around the world.
“The current levels of Sterling against the Euro will help to sustain UK production levels,” said Mr Martin. “British goods entering the euro-zone remain a value proposition, bolstering their competitiveness as global production moves forward.
“An interesting time lies ahead in determining the true picture of the manufacturing sector from production statistics. The continued likelihood of extended summer closures over coming months may see a fall in production levels, but the overall effect of this will be leaner, more effective businesses when they return.”
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Saturday 04 February 2012
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