UK economy

Keeping up to date with developments in industry and in the UK economy as a whole is essential for companies. EEF’s website aims to provide a quick and easily accessible guide to the latest economic indicators that matter to your business.

Manufacturing output

Manufacturing output is estimated to have fallen by 0.8% in the second quarter, according to official figures. In engineering, output fell by 0.1%, compared with the previous quarter. Looking at the sector breakdown, the transport sector grew by 1.1% but this was outweighed by electronics and mechanical engineering output, which fell by 1.2% and 0.5%, respectively.

The August CIPS/Markit survey showed the PMI rose to 45.9 from 44.1 in July, indicating some easing in the pace of contraction. The increase was driven by higher output and order balances. However, the survey showed inflationary pressures intensified as the output price index hit a series high.

Output (3-month average on a year ago)

	Manufacturing	Engineering
Jun-07	1.1	1.9
Jul-07	0.8	1.7
Aug-07	0.6	1.4
Sep-07	0.2	0.8
Oct-07	0.0	0.5
Nov-07	-0.1	0.3
Dec-07	0.2	0.8
Jan-08	0.3	0.7
Feb-08	0.8	1.3
Mar-08	0.9	0.8
Apr-08	0.7	0.9
May-08	-0.2	0.3
Jun-08	-0.7	-0.4

Source: EEF from National Statistics

The Engineering Outlook page has more information about recent trends and forecasts for your sector.

Economic growth

Final GDP estimates show the UK economy stalled in the second quarter, with growth revised down from 0.2% to zero. Estimates for both manufacturing and services output growth were revised down to -0.8% and 0.2% respectively. Construction output declined by 1.1% in the second quarter.

GDP (% quarter on quarter growth)