Office of National Statistics: Manufacturing - 0.8 percent quarterly fall

Manufacturing output decreased by 0.8 per cent in the second quarter of 2008 compared with the first quarter. Output from ten of the manufacturing sub-sectors decreased, two increased and one remained unchanged in the latest quarter.

Within the widespread decreases in the latest quarter there were significant decreases in output of 1.6 per cent in the food, drink and tobacco industries and 4.4 per cent in the other manufacturing industries not elsewhere specified. There were no significant increases during the quarter. The decrease in manufacturing during quarter two would have been even greater without strong demand for UK manufactured goods from overseas. The proportion of manufactured goods exported during the quarter was the highest since the first quarter of 2001.

Total production output decreased by 0.8 per cent in the second quarter of 2008. There was a decrease in output of 1.9 per cent in the energy supply sector but an increase of 0.6 per cent in the mining and quarrying sector. Within energy supply, electricity supply decreased by 2.7 per cent and gas supply decreased by 1.8 per cent, but water supply output increased by 1.0 per cent during the quarter.

Between May and June, manufacturing output decreased by

0.5 per cent. The fall in June was widespread with output decreasing in 12 of the 13 sub-sectors. The only significant decrease was in the electrical and optical equipment industries, where output fell by 1.8 per cent during the month. There were no significant increases on the month. The only increasing sub-sector within manufacturing during June was the coke, refined petroleum and nuclear fuel industries where output increased by 6.9 per cent following very low output during May. Several oil refineries were closed for part of May to complete urgent unplanned maintenance and output has returned to more normal levels in June.

The overall Index of Production decreased by 0.2 per cent between May and June. Energy supply output increased by

2.2 per cent following lower output during May caused by record high temperatures across the UK. Over the same period, mining and quarrying output increased by 0.7 per cent.