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 also fell by 0.1%, compared with the previous quarter. Looking at the sector breakdown, the transport sector grew by 1.1% but this was offset by electronics and mechanical engineering output, which declined by 1.2% and 0.5%, respectively.

The July CIPS/NTC survey pointed to the weakest activity in manufacturing for a decade. The index fell to 44.3, down from 45.9 in June. There was some improvement in the output component of the index, but the new orders balance fell further on the back of weaker domestic demand. However, the price balances hit series highs in July. The input price balance rose to 82.4 and the output price balance edged up to 63.1.

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

Preliminary estimates for second-quarter GDP indicate the economy grew by 0.2% quarter-on-quarter, down from 0.3% in 2008q1. With the exception of agriculture output growth in all production industries fell. The service industries performed better, growing by 0.4% on the previous quarter, underpinned by robust growth in the transport, storage and communication sector.

GDP (% quarter on quarter growth)