Gwent Business
Manufacturing returns to growth
10:35am Tuesday 8th November 2011
The manufacturing sector returned to modest growth in September, figures revealed today, but fears lingered over its health.
Manufacturing output increased by 0.2 per cent between August and September, the Office for National Statistics (ONS) said, after declining 0.3 per cent in the previous month. It is the first time the sector has seen growth since May.
But the overall index of production, which also includes mining and the oil and gas industries, was flat.
And economists said the manufacturing sector was still in bad shape after being hit by weak demand amid the eurozone debt crisis.
Chris Williamson, chief economist at Markit, said: "This is a disappointing rate of growth for a sector that was hoped to lead the UK's economic recovery, and growth looks set to weaken further in the final quarter of the year."