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Car plants getting back to work after extended shutdowns during the spring is helping push UK industrial activity to its fastest rate of monthly growth since the start of 2008.
But the City warned against believing the UK has emerged from recession as factory output levels remain markedly down year on year.
The Office for National Statistics said manufacturing production rose 0.9% in July, way ahead of the 0.3% a consensus of City analysts predicted.
Car production was up more than 10% in the month, helped, it was claimed, by the boost to sales from the Government's £2000 vehicle scrappage scheme. However, total manufacturing output remains down 10.4% on the year. “This is good news for hopes that the overall economy will return to growth in the third quarter,” said Howard Archer of economics consultancy Global Insight.
However, Arifa Sheikh-Usmani, trader at City bookie Spreadex, warned: “It is important to remain cautious because although decline is obviously slowing that does not necessarily mean growth is the next step.”
The strong figures helped to send the pound surging by more than two cents against the dollar to $1.655.
Reader views (10)
Given the amazing drop in output any upturn will have a significant statistical effect. What will be the corresponding statistical impact NEXT year though.
I suspect it will be minimal and we are going to find growth sluggish.
Remember even when we had allegedly good growth under Labour -- we still had a growing deficit. Darling is living in dreamland if he thinks growth will avoid future cuts
- Trevorsden, Wallingford; UK, 08/09/2009 20:42
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who said I supported cameron? I am at heart a labour supporter but your boyfriend has made it clear he detests the working class more than thatcher even did! Now run along and get over your schoolboy crush!
- Louise, london, 08/09/2009 19:50
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Louise-Keith Price is a public sector union commissar. He and McBroon belong to a mutual appreciation society. It's a kind of symbiosis, one cannot survive without the other, which means that both will soon be gone forever!
- Keith Lonsdale, Doncaster, 08/09/2009 18:16
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I can just imagine you sitting in your bedsit with gordon posters all over the walls."
Why Louise, you have no comprehension of anyonr supporting anyone but your Camerob chap. and You have yo be working to pay tax, remember
- Keith Price, Luton England, 08/09/2009 16:46
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Keith Price what is it with your weird obsession with Gordon Brown? Its creepy I can just imagine you sitting in your bedsit with gordon posters all over the walls. The man has ruined this country and is spending even more tax payers money to try and get us out recession. You wont be thanking him when we are all hit with massive tax rises!!!
- Louise, london, 08/09/2009 15:44
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Scappage has had little affect on British assembled cars. This mainly boosts sales of low value cars like Hyundais!
- Michael, London, 08/09/2009 13:37
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If the economy is recovering does this not create the danger of rising interest rates next year.Would this not kill off any nacsent housing recovery REF: Yesterday Evening Standard report on the Woolwich flat fiasco putting some 83 young Londoners into potential bankruptcy
- Andrew, Ely UK, 08/09/2009 12:11
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Scrapppage scheme certainly helped me, I managed to get a fantastic price for my 13 year old honda civic privately, I bought my next second hand privately and managed a good deal, thankyou Broon!
- Rosemary Mitchell, Chesterfield, Derbyshire, 08/09/2009 12:04
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Well, we need more cars and drugs in the UK; it's our only growth potential left.
So; what is new?
- Mickinlondon, london, 08/09/2009 12:03
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Well done Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton England, 08/09/2009 11:22
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