UK manufacturing output grows

The largest contributor to growth was the rubber and plastic industry, according to ONS figures

British manufacturing output increased by 0.4% in January 2014, with output rising in nine of the 13 manufacturing subsectors, according to figures from the Office for National Statistics.

The largest contributor to growth was the manufacture of rubber, plastic products & other non-metallic mineral products, which increased by 6.2% on December 2013. The next largest contributor was the manufacture of machinery & equipment, which increased by 5.2% month-on-month.

The poorest performance in January came from pharmaceutical industry, which decreased by 13.9%, followed by the manufacture of coke & refined petroleum products, which fell by 7.3%. The ONS said evidence suggests that refining was particularly low in January because of planned maintenance work being carried out at a number of refineries.

Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said: “As a number of business surveys have so far suggested, manufacturing entered 2014 with a fair wind behind it with a majority of sub-sectors posting gains on the month.

“While the picture isn’t universally positive, strength seen in sectors from machinery and transport to plastics and non-metallic minerals suggest there are a number of factors driving growth in the sector, including improving investment intentions and a brighter construction outlook.”

Manufacturing output increased by 3.3% between January 2013 and January 2014, the highest increase since February 2011.