UK manufacturing output sees rise in July

The Office for National Statistics has today revealed a rise in UK manufacturing output during July, boosted by a sharp improvement up in car production.

Factory output rose by 0.9% in July when compared with the previous month – treble the figure that analysts had forecast and the fastest rate in 18 months.

However, output was down by 10.1% compared with a year ago.

One analyst described today’s figures as a “welcome surprise” and said they suggest that the UK will experience positive growth in the third quarter.

Car production surged by 10.4% during July from the previous month and was the primary reason for the increase in factory output.

The rise in car production is due to the success of the scrappage scheme which has also led to a rise in car sales.

Last week, the Society of Motor Manufacturers and Traders revealed that car sales in August rose for the second consecutive month, up 6% compared with a year earlier.

However, in related news today, the British Retail Consortium (BRC) revealed a fall in retail sales for the month of August.

UK like-for-like sales (which excludes new stores) fell 0.1% compared with August 2008, according to the BRC.

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