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Manufacturing Fall

Manufacturing in the UK has suffered a drop in production in the month of August which has reflected the global economy.

From statistics produced, Manufacturing seems to have fallen by 0.3% during august. Economists predicted a 0.2% fall. Annual growth was only 1.5% which has been the slowest for 18 months. Across industry however, production rose by 0.2% during the month which went against predictions of a fall, but all in all is still down 1% year on year.

The UK government had been relying on manufacturing to pick up and boost the economy. Economists predict that in the following months things will not get any better.

“August’s industrial production figures provide yet more evidence that recent turmoil in financial markets and slowdown in the global economic recovery has taken its toll on the manufacturing sector,” said Samuel Tombs, UK economist at Capital Economics.

Howard Archer, economist at IHS Global Insight, commented: “A third successive fall in manufacturing output in August highlights the sector’s increasing struggles in the face of difficult domestic and global conditions. Furthermore, life looks likely to remain very challenging for manufacturers in the near term at least.”

There was an increase in output of oil and gas which increased 2.3% but year on year is down by 18%.

The business group’s chief economist David Kern said the results suggested “the much-needed re balancing of the UK economy is not yet occurring”.

He added: “Given the worsening international situation and the acute problems facing the eurozone, there is a clear need for the Monetary Policy Committee and the government to make every effort to avert risks of recession … the government must re prioritise its spending plans to promote growth and wealth creation.”

The team at Select Factoring can provide manufacturers with a range of funding through Factoring, some of our affiliates are specialists in manufacturing and provide instant funding using invoices held by companies.

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