Watford, United Kingdom (PressExposure) January 14, 2010 -- As the British economy is in the process of recovery, the UK markets are being keenly scrutinized. One of the parameters to keep a tab on the ongoing market affairs is through analyzing the output factor. Since the manufacturing output is getting low with the passage of time, it is becoming bothersome as a result.
The major concern as of now is that the output is maintaining stagnancy as it remained flat for a second successive month thus threatening the process of economic recovery.
Except the manufacturing sector, growth is being registered from almost all the quarters. For example, the overall industrial production figures are showing positive results if we take into account the oil and gas extractors that registered 0.4pc growth from October to November.
As far as the oil and gas extraction is concerned, it rose by 7.2pc according to the Office for National Statistics (ONS). Although the UK economy is growing steadily, however the problem remains that it is not growing as expected.
As the overall output fell in 10 of the 13 manufacturing sub-sectors, it is bound to raise the concerns. Amidst slight drop rates in various sectors, the largest drop of 29.2 per cent was registered from manufacturing of machinery for mechanical power. If we take into account the overall production of the UK, it fell by 6 per cent with 5.4 drop in the manufacturing sector, as per the ONS.
As the manufacturing sector is still struggling to emerge from the ongoing crisis, serious concerns remain about the positive response from the market pertaining to the manufactured goods.
Amidst bad news from all the quarters, hopes are still alive as the Centre for Economics and Business Research (CEBR) is expecting the UK manufacturing sector to grow by 2011 onwards. This is as per the data, which they recorded in the recent past.