Mane Engineering Issue 6 - March 2017 | Page 3

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ritish factories started the year on firm footing despite a fall in monthly manufacturing output, as the weaker

pound continued to boost exports, according to official data.

Manufacturing output fell 0.9% in January, according to the Office for National Statistics (ONS). The ONS attributed the January drop to the "highly erratic" pharmaceuticals sector, which also drove a 0.4% decline in broader industrial production.

Economists said key sectors such as cars helped to offset the overall weakness in January, following a massive surge in output at the end of last year.

"Manufacturing was weak in January, but it rose by 2.2% month-to-month in December," said Alan Clarke, an economist at Scotiabank.

"It was on drugs - literally. Pharmaceuticals boomed by almost 20% in the prior two months and slipped back by 13.5% in January. We shouldn’t be too concerned by that."

Less volatile quarterly data showed manufacturing production rose 2.1% in the three months to January, representing the biggest quarterly increase in almost seven years.

MANUFACTURING

NEWS

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