In his 2011 Budget speech, UK Chancellor George Osborne believes that Britain's manufacturing industry has a key part to play in the country's future economic growth.
China has recently become the world's top manufacturing country by output, ending the United States' 110-year run as the largest goods producer according to IHS Global Insight. The last time China held the position was around 1850, however since 1895 the manufacturing industry has been dominated by US producers.
After suffering a remarkable 16 percent plunge in output during the economic downturn, the manufacturing sector in the UK has been continuing its recovery since last year.
UK industrial production rose in August as the manufacturing sector continued to expand despite the uncertain economic outlook.
Production rose by 0.3 percent compared with the previous month, and 4.2 percent compared with August 2009, it was reported by the BBC on Friday, 8 October.
Britain's manufacturers have reported another month of steady growth, taking the annual pace of expansion to a near-16 year high, but economists are still sceptical as to whether the recovery would last.
Just a day after it emerged that new car sales dropped in July, as the fragility in the economy starts to take its toll, the Office for National Statistics (ONS) has revealed that UK manufacturing output grew less
The UK’s manufacturing sector saw output rise at the fastest rate in 15 years in the three months to July, as demand for UK-made goods continued to strengthen and firms rebuilt their stocks, the CBI said today.
Hetal Mehta, Senior Economic Advisor to the Ernst & Young ITEM Club, believes that manufacturing will continue to lead economic recovery in the UK.
Mehta made the assumption following news that UK manufacturing in May grew at its fastest pace in more than 15 years.
The growth of global manufacturing eased again in June although it was still robust, a key industry survey has revealed.
The Markit/JPMorgan Global Manufacturing PMI index stood at a seasonally adjusted 55.0 in June, down from 57.0 in May. A reading above 50 indicates growth, while one below suggests contraction.
Facts and figures
Singapore’s manufacturing output surged a record 58.6 percent year-on-year in May on increased orders for electronics goods and biomedical devices from Europe.
Strong demand for pharmaceuticals also played a role.
The expansion achieved by Eurozone manufacturing companies since spring slowed in June, according to a new study released by Markit.
Its Eurozone flash manufacturing purchasing managers index fell to a four-month low of 55.6 in June from 55.8 in May.
And the services PMI dropped to a two-month low of 55.4 from 56.2 in May.
Demand for UK manufactured goods has weakened a little in June compared to a significant improvement in May, the CBI has said.
However, it stressed that the fortunes of the sector are looking up.
U.S. manufacturing output climbed 0.9 percent last month, its third consecutive monthly gain of about 1 percent, the Federal Reserve has said.
This helped U.S. industrial production climb to a nine-month high in May.
British manufacturing output and orders expanded at their fastest pace in 15 years in the second quarter, but worries about fiscal tightening and the euro zone economy have clouded expectations.
The Economic Development Board of Singapore reported that manufacturing output increased 24.3 percent in April 2010 on a seasonally adjusted month-on-month basis.
The surge in production is due, in large part, to an upswing in production in the volatile biomedical sector. Excluding biomedical manufacturing, industrial production climbed 31 percent.
The UK manufacturing industry suffered an unexpected 0.9 percent decline between December and January, according to the Office for National Statistics (ONS).
January’s freezing weather conditions were to blame for the figure.
Manufacturing activity had surged by 0.9 percent in December, which also affected the month-on-month comparison in January.