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BCC: Manufacturing Sector Faces Challenges Despite Modest Growth

  • Manufacturing output in June 2015 was up 0.2% on the month and up 0.5% on the year
  • Total Industrial production in June 2015 was -0.4% on the month and up 1.5% on the year

Commenting on the index of production figures for June 2015, published today by the ONS, David Kern, Chief Economist of the British Chambers of Commerce, said:

“Although manufacturing output returned to modest growth in June, after declining in May, the sector’s overall performance remains mediocre. Year on year growth is below 1% and the level of manufacturing output is still almost 5% below its pre-recession peak in the first quarter of 2008.

“The manufacturing sector is up against a number of headwinds including difficult global circumstances. While there have been modest improvements in the Eurozone, which will help exporters in coming months, progress will be difficult because of the recent strength of the sterling against the euro. Any premature action on interest rates is likely to make these problems worse.

“The UK economy will remain dependent on its dynamic and competitive services sector but manufacturing remains a vital sector for exports, innovation and productivity. The government must reinforce its efforts to encourage manufacturing firms to explore international export markets, particularly beyond the European Union.

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