The latest figures from the Office for National Statistics (ONS) on manufacturing for the first quarter shows the capital goods sector was 1.9% ahead of the level reached at the end of the first quarter of 2012.
The output figures confirm the trend identified in the recent MTA Business Survey which showed Britain's engineering-based manufacturing companies investing in machine tools and related equipment at a faster pace than for most of 2012.
Industries like automotive and aerospace within the capital goods sector make up the majority of customers for manufacturing technologies and these have continued to prosper over the past year. The ONS output figures released today however, indicate that manufacturing output as a whole which includes non-engineering-based production was 2.1% down on a year ago.
The summer of 2012 in particular saw a fall in orders placed as the crisis in the Eurozone unfolded. Whilst the future in Europe remains uncertain, engineering-based manufacturing investment remains steady.
Graham Dewhurst, the MTA's director general commented: “This is encouraging news. A lot of discussion about the state of Britain's economy centres around manufacturing versus services and in the quarter just passed services grew while manufacturing as a whole shrunk. However, over the last year engineering-based manufacturing with its need to invest for the future and remain internationally competitive has been leading the way back to recovery.”
MTA
www.mta.org.uk
