Further signs of the recovery in manufacturing emerged today with official figures showing growth in factory output in May.
The sector – seen as a drag on the UK economy following disappointing data in recent months – expanded by 0.5% between April and May, according to figures from the Office for National Statistics.
The growth was slower than the 0.8% adjusted expansion experienced by manufacturers between March and April.
But it represented the first time that there has been three consecutive months of growth since the period between August and December 2000.
Overall production industry output was 0.6% higher in the three months to May than in the previous three months and manufacturing output increased by 0.4% in the latest three months.
Although the Bank of England is expected to keep interest rates on hold on Thursday, the figures are likely to increase pressure for another rate hike in August.
John Butler, of HSBC, said the figures showed that the recovery in manufacturing indicated in recent surveys was beginning to materialise in official data.
“Overall, this is another strong set of indicators,” he said.
References: EGi News 06/07/04
