Strong April figures encourage manufacturing

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Manufacturing output in April 2016 was up 2.3% on the month, and rose 0.8% on the year, according to the Office for National Statistics. Total industrial production in April 2016 was up 2% on the month, and rose 1.6% on the year, it added.

The rise in pharmaceuticals more than offset a further contraction in the manufacture of iron and steel, which fell 29% in the year to April, reflecting the ongoing crisis faced by the steel industry.

David Kern, British Chambers of Commerce chief economist, said: “After a long run of disappointing results, April’s stronger than expected figures should provide a much needed boost to confidence at a time when most economic figures published recently have been disappointing.

“But there is no room for any complacency. Manufacturing output is still below its pre-recession level, and longer-term trends show that the sector is struggling.

“This is unsurprising given current adverse global economic conditions, but the latest figures show that there are still areas of strength in British manufacturing that must be supported.”

He added: “A healthy manufacturing base remains critical to the well-being of our economy in key areas such as exports, productivity and innovation.”