Government statistics reveal "worrying" slide in factory output

Some experts believe uncertainty ahead of the election could have impacted on the sector

The manufacturing sector shrank by 0.4% in April, according to the latest statistics from the Office for National Statistics. 

The decline cancels out an improvement of the same rate in the previous month.

The wider industrial production sector did better than expected with an increase of 0.4%, buoyed by an improvement in North Sea oil and gas production.

The ONS said manufacturing in the three months to April was 4.4% below its level at the start of the recession in 2008. Its year-on-year growth of 0.2% in April was the slowest since September 2013.

A month-on-month decline was led by weakness in pharmaceuticals production, following a sharp increase in March.

It was suggested that the weakness in manufacturing in April could have been affected by uncertainty ahead of May's general election.

Markit chief economist Chris Williamson said it was a "very disappointing start to the second quarter". He said the data "casts doubt on widespread expectations that the economy is picking up speed after the sluggish start to the year".

"The better than expected improvement in the headline industrial production number masks a worrying downturn in factory output, which is a better barometer of the underlying health of the industrial sector," he added.

Manufacturing's decline reinforced survey evidence that the sector was "stuck in a soft patch" linked in part to the strong pound, Williamson said.

Andy Hodgson, general manager of motion control, digital factory, at Siemens UK & Ireland, added: “It’s interesting to see the mixed picture presented by the latest Index of Production. While there have been increases in output across some sectors, it is still clear improvements can be made if we can crack the productivity puzzle. 

“From a manufacturing perspective, we believe sustained productivity gains can be achieved through three key areas. Firstly, provision and support of the right education and training required for future growth and to meet the needs of a changing manufacturing marketplace. Secondly, investment assistance for new innovative digital and smart factories capable of tackling complex production and consumption challenges and finally, encouragement of innovation across the industry based on long-term strategic investment,” Hodgson said.