| Barclays analysts still positive on UK manufacturing |
|
| UK Economic | |
| Written by Will Peters | |
| Wednesday, 10 March 2010 14:05 | |
|
Contradiction between ONS and CIPS data startling. Barclays (LON:BARC) analyst's have suggested they still hold a positive outlook on the UKs manufacturing outlook. Barclays UK Manufacturing, Transport and Logistics division released a statement in response to today's dire figures on UK manufacturing issued by the ONS. Industrial production in the UK fell unexpectedly in January, as the cold weather dented firms' output, official data has shown. Output fell by 0.4% compared with December, the ONS said. Analysts had expected a rise of 0.3%. "Declines evident in today’s figures present a much more restrained outlook than that presented by CIPS UK Manufacturing PMI released only last week. The holding-pattern that UK manufacturing has found itself in throughout last year has not yet passed, however various manufacturing sectors show signs of breaking from this and the first positive year on year figure for some time points the way towards seeing recovery," says Graeme Allinson, Head of UK Manufacturing, Transport and Logistics at Barclays Corporate. With the possibility of figures still being a little turbulent from month to month, nonetheless positivity in the manufacturing sector is mounting says the bank. Uncertainty over tax increases, government spending cuts and election results may slow recovery somewhat, although international trade could see the benefit of this uncertainty as the recent depreciation of the pound will likely bolster UK exports in the long term, despite yesterday's disappointing data. “Businesses looking to take advantage of export markets will see this aided by economic stabilisation across Europe. With a healthy focus from political parties on UK manufacturing, hopes will be for continued support of the sector which will help cement a more positive position moving forwards,” says Allinson. 
|
|
| Last Updated ( Wednesday, 10 March 2010 14:08 ) |