U.K. manufacturing output unchanged in third quarter

Index of Manufacturing, 2003=100

Manufacturing output in the United Kingdom was unchanged in the third quarter of 2007 compared with the second quarter, according to data released November 5 by Britain's Office for National Statistics. Eight subsectors increased and five subsectors decreased in the latest quarter.

There was one significant decrease in output in the quarter within the transport equipment industries, where output decreased by 2.9 percent. There were no significant increases in manufacturing during the latest quarter.

Overall production output was also unchanged in the third quarter of 2007. There was a decrease in output of 1.3 percent in the mining and quarrying sector while output in the energy supply sector increased by 0.8 percent. Oil extraction output decreased by 2.3 percent; routine maintenance during August continued into September and repair work at one oil field further reduced extraction during the quarter. Gas extraction output also decreased in the third quarter but by only 0.6 percent.

Between August and September, manufacturing output decreased by 0.6 percent. The fall in September was widespread with output decreasing in 10 of the 13 subsectors and increasing in only three subsectors. The only significant decrease was in the electrical and optical equipment industries where output fell by 1.7 percent on the month. There were no significant increases in output in the latest month.

The overall Index of Production decreased by 0.4 percent between August and September. Mining and quarrying output increased by 0.4 percent and energy supply output increased by 1.0 percent. Increases in electricity supply of 2.3 percent and water supply of 0.5 percent were partly offset by a fall of 2.2 percent in gas supply. A greater proportion of the electricity generated in September was from nuclear facilities, which is the most efficient fuel for electricity generation. This, in turn, led to reduced commercial demand for gas.