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An end in sight for the manufacturing malaise

Article Abstract:

UK manufacturing industry appears to have an output growth of 0.5%, under that of Germany, but engineering firms are performing well and it is textile, garment and plastic concerns that have shown weakness. There is also doubt over the accuracy of UK government statistics since the Confederation of British Industry tends to give a more optimistic picture of manufacturing output. A reduction in stockbuilding could help manufacturing, but the strength of pound sterling affects the industry by undermining profits as well as hitting exports.

Industry GDP

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At a price

Article Abstract:

United Kingdom manufacturing industry output may have increased by some 0.4% in Jan 1998, after drops in output for the three previous months. Evidence from unofficial surveys has indicated rising output, in contrast to official figures showing a drop. Profit margins are affected by price reductions to prevent drops in export volumes, and domestic prices have changed little. A combination of a strong pound sterling, weaker world trade and slower domestic demand could also affect future output.

Manufacturing GDP

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Myths of the manufacturing meltdown

Article Abstract:

British manufacturing industry faces problems which have been attributed to the high value of pound sterling. However other factors appear to be the problem, such as an inventory correction.

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