–May manufacturing output +0.3% m/m; +4.3% y/y; median +0.4; +4.6
–May industrial production +0.7% m/m; +2.6% y/y; median +0.5; +3.2

LONDON (MNI) – Manufacturing output rose during May pushing annual
growth to its highest level for more than 15 years, according to figures
released by National Statistics Thursday.

Manufacturing output rose 0.3% on the month in May and was up 4.3%
on the year. The outturn was slightly below the median forecast for a
rise of 0.4% on the month and 4.6% on the year. The rise of 4.3% on the
year was the highest since December 1994.

The figures continue to show the manufacturing sector recovering,
although there was a downward revision to the April data which now shows
a 0.8% monthly drop compared with the originally estimated 0.4% fall.
National Statistics said this was due to a combination of late data,
rebasing of the series and seasonal adjustment.

On a trend basis, manufacturing output rose 2.6% in the latest
three months compared with the previous three months, the strongest
increase since September 1988.

Within the 13 manufacturing sub-sectors there were rises in output
on the month in 8 and falls in 4. The main rises came in electrical
and optical equipment, basic metals and machinery and equipment. The
main falls came in chemicals and man-made fibres, rubber and plastics
and other manufacturing.

The wider measure of industrial production was up 0.7% on the month
in May, above the median for a 0.5% increase. There was, though, a
downward revision to the April data which now shows a 0.7% fall against
the previous estimate of a 0.4% decline.

Industrial production was boosted by a 1.3% rise in electric, gas
and water output, as well as a 2.5% increase in mining and quarrying
output due to a rise in oil and gas production.

National Statistics said that growth industrial production in Q1
had been revised down to 1% from 1.2%, adding that this would have no
material impact on the Q1 GDP data. Revised GDP figures are due to be
released on Monday.

–London newsroom 4420 7634 1624 email: drobinson@marketnews.com

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