Manufacturing output down again

In more bad news for the economy, factory output in the second quarter of 2012 was down by 0.9% on the first quarter of the year, according to the latest figures from the Office for National Statistics.

It is the 10th successive three-month period where output has fallen.

Of the 13 manufacturing sub sectors, seven fell with six rising. The largest downwards contributors to the quarterly fall came from the manufacture of basic pharmaceutical products and preparations, which fell by 10.1%, the manufacture of wood and paper products, which fell by 5.0% and the other manufacturing sector, which fell by 2.7%. The largest upwards contribution came from the manufacture of machinery and equipment, which rose by 3.4%.

Output in the second quarter was down by 2.6% on the same quarter of 2011.

The index of production (manufacturing, mining and utilities) fell by 0.9% in the second quarter of 2012 compared with the first quarter.

Production was down by 2.8% on the same quarter of 2011.

Tony Burke, assistant general secretary of the Unite general union, said: “Britain needs to break out of the spiral of decline made in Downing Street. Osborne’s austerity is choking off demand and Britain’s banks refusing to lend are killing off any hope of a recovery.

“Britain needs a National Investment Bank to support businesses crying out for funds. This would allow business to bypass the existing banking structure that has failed to lend and properly support British PLC.”

www.ons.gov.uk/ons/dcp171778_274942.pdf

www.unitetheunion.org/news__events/latest_news/latest_economic_indicators_poi.aspx