UK manufacturing output records further decline in March

The Office for National Statistics (ONS) has reported that British manufacturing output fell by 0.1% in March compared with the previous month.

While the figure showed a decline, it was not as bad as expected with analysts forecasting a fall of 0.8%. However, output fell 5.5% in the first three months of 2009 when compared with the previous three months - which represented the worst figure since 1948.

In the meantime, the UK’s trade deficit narrowed to £2.5 billion in March, compared with £2.8 billion in February, also better than expected.

Furthermore, industrial production, a wider measure which comprises energy supply, mining and oil and gas as well as manufacturing, was down by 0.6% in March against the previous month, representing an annual fall of 12.4% - the largest fall in over 40 years.

According to Philip Shaw, chief economist at Investec, the data was “fairly positive”.

EEF chief economist, Stephen Radley, said: “It is too early say that the downturn in manufacturing is over.”

Following the news, the pound rose to $1.5248 against the US dollar - close to a four-month high.

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