In April this year it was announced that the UK had returned to the financial recession which first affected the country in 2009. The economy had suffered a 0.3% decrease, largely due to a reduction of output in the construction sector. It is therefore excellent news for the economy that British manufacturing has reportedly seen a significant boost over the summer period. Economists forecast a 2% increase in the sector, an expectation which was exceeded by the actual rise of 3.2% in July – making it the greatest increase that the industry has had since 2002.
The news is especially promising for manufacturers in the Birmingham area, which was reported as the highest-performing in the country. There, 45% of manufacturers found improved sales during the third quarter of the financial year, with more companies also working at full capacity compared to the rest of Britain. Statistics for manufacturers in Birmingham are also above the average in the UK for overseas sales. This turnover appears to have increased morale within the industry, with almost 60% of manufacturers apparently being confident that the figures will continue to rise over the next financial year.
The manufacturing industry has always been regarded as one of the most important for the country’s economy. In 2010, it reportedly accounted for over 8% of the labour force in Britain, and was behind 83% of overseas exports. The most significant sector in regards to output and profit is industrial manufacturing. The UK has a particular focus on the production of motor and naval goods, including everything from Rolls-Royce cars to items as specific as ship’s bells. Although many of the companies nowadays aren’t British-owned, they provide thousands of jobs for British workers and make a valuable contribution to the country’s economy. With a bit of look the economy will continue to grow at an ever increasing rate allowing the country to properly recover from the downturn in the last few years
Another piece of good news for financiers is that construction has seen a 0.2% increase in the second quarter. Although nowhere near as impressive as the manufacturing figures, it indicates a possible stabilization of the sector in the future. Such significant growth across the various industries within just one quarter certainly provides a more positive outlook for the country’s finances. If these trends continue into the next financial year, then the British population may soon be able to breathe a national sigh of relief.
Author – Adam Barley, Adam has been writing article for years now on many differing topics with a great deal of success