Manufacturing Output Lifts Production

The quarterly analysis of the index of production published by the ONS shows that production increased by 0.2% between Q2 and Q3 2014. The growth was mainly due to manufacturing which increased by 0.4%.

The annual comparison estimates that total production output increased by 1.5% between September 2013 and September 2014. Manufacturing was the only sector to record a rise with an increase of 2.9%.

On a month by month basis total production in September 2014 was said to have increased by 0.6% when compared with August 2014. Three of the main sectors reported growth with mining and quarrying being the main contributor with growth of 3.8%.

Manufacturing output increased by 0.4% between August and September 2014 and the main sub-sectors responsible were transport equipment, computer, electronic and optical products and chemicals and chemical products.

Producer Output Price Rises In September

The output prices of home sales of manufactured products increased by 2.5% in the year to September 2012 compared with an increase of 2.3% last month according to a statistical bulleting from the ONS. Between August and September the index for output rose by 0.5%, the same as between July and August. Input prices however fell b y 1.2% in the year to September 2012 compared with a fall of 1.1% last month. Input prices also fell between August and September by 0.2% compared with a rise of 1.9% between July and August. The largest changes in output prices were in tobacco and alcohol with an 8.7% increase, petroleum products 3.4%, computer, electrical and optical with 2.9% and other manufactured goods with a 2.8% change. The largest changes in input price were in imported metals with a -12.8% percentage change and home food materials with a change of 10.1%. Fuel increased by 7.4% and crude oil fell by 2.3%. Imported chemicals and imported parts and equipment also fell by 3.6% and 3% respectively.

1% Fall In Production

Production fell by 1% over the year to April 2012 according to figures on the Index of Production from the ONS. Manufacturing fell by 0.3%. Production remained unchanged over the month March to April but manufacturing fell 0.7% over that period.

In more detail, the electricity, gas, steam & air conditioning sector rose by 13.6%, mining & quarrying fell by 5.7% which together with the fall in manufacturing offset the gains slightly. The water and waste management sector was unchanged. The food sector also fell by 5.7% over the year, chemical products fell by 0.9%.

Some sectors grew, electrical equipment grew by 16.5%, transport equipment by 8.8%, machinery and equipment by 6.4% and computer, electronic and optical by 6.2% over the year. The computing sector also saw the biggest growth over the month with an increase of 8.1% while pharmaceuticals fell by 6%.

Manufacturing Up By 2.7%

The index of production from thew ONS increased by 0.7% in March 2011 compared with March 2010. Manufacturing increased by 2.7% over the same period (figures are seasonally adjusted). The energy supply sector is also helping to drive growth.

Over the last quarter production grew by 0.2% with manufacturing growing by 1.1%. The largest contributions to the growth in manufacturing were in transport equipment (5.1%), food, drink and tobacco (1.4%) and electrical and optical equipment (2.9%). Mining and quarrying fell by 10.7% in March on March a year ago and by 1.4% on the quarter.

Factory Gate Prices Increased In August

Producer output and input price indices from the ONS increased in August. The output index for home sales of manufactured goods increased by 4.7% over the year to August. The monthly index between July and August was unchanged. The inputs index shows an increase of 8.1% over the year but a fall of 0.5% over the month to August.

The main contribution to the change in the annual output index was an increase of 11.6% in the price of petroleum products. Other significant contributions came from 'other products' (6.9%) and electrical and optical (6.5%). On the inputs side, significant contributions were made by imported metals (17.5%), crude oil (11.8%) and imported chemicals (10.7%).

5% Increase In Factory Gate Prices

Output prices for home sales of manufactured products increased by 5% in year to March, from 4.2% last month and 0.9% between February and March. The increase mainly reflects the 24.8% increase in output price for petroleum products over the year. It is the highest increase since September 2008. Electrical and optical increased by 6.3% and chemicals by 4.5%. Excise duties did not contribute that much to the increase. The output price index excluding volatile priced products like food, beverages, tobacco and petroleum increased by 3.6% in the year and 0.7% in the month to March. The output price of petroleum products increased 3.9% over the month. The index for paper products is the lowest it has been since January 2006.

Input prices for materials and fuel for the manufacturing industries increased by 10.1% in the year and 3.6% in the month to March. The increases mainly reflect the 60% increase in price for crude oil and 14.4% increase in price for imported metals over the year. Imported materials as a whole increased 4.4% between February and March. If the more volatile categories are excluded the index increased 4% over the year and 1.1% in the month between February and March. The price of crude oil increased 9.7% in the month between February and March and imported metals 5.3%. It is the largest monthly rise since records began in February 1991.

The producer price index is important because because it provides a key inflation measure as important as the CPI or the RPI and works on a similar 'basket of goods' principle. The current data is from the statistical release from the Office for National Statistics for March 2010.

Factory Gate Prices Increase Again

Output prices rose overall by 3.8% in the year to January, compared with a 3.5% rise in the year to December. The index rose 0.4% between December and January mainly due to price rises in petrol products, tobacco and alcohol products and other manufactured products. Input prices for materials and fuels rose 8.4% in the year to January compared with 7.4% in the year to December and 2% between December 2009 and January 2010 compared with 0.6% between November and December 2009.

Over the year to January output prices increased in all catogories except textiles and clothing which decreased by o.2% The biggest increase was in petroleum products with 20.6%. Electrical and optical went up 4.3%, tobacco and alcohol by 3.7% and both transport and other products by 3.3%. The changes over the month to January saw decreases in the output prices of food at 0.1%, textiles and clothing at 1.2% and metal products at 0.1%. Petroleum products went up by 1.7% which was the biggest increase over the month.

Input prices were generally up with a 70.6% rise in the price of crude oil. Impiorted metals went up by 7.1%. A number of categories prices went down in January including fuel at 16.1%. Imported food materials prices decreased by 2.8%, home food materials prices decreased by 5.7% and other home produced materials by 0.7%. Over the month the price of crude oil increased by 5.3% and fuel by 3.1%. Home food products materials prices increased by 0.4% and imported food materials products by 0.3%.