UK's manufacturing production increased more than expected in October

According to Bloomberg News, the manufacturing expansion rate in the UK in October was twice as much as economists expected, indicating that the UK economy still maintains its recovery momentum in the fourth quarter.

On December 7, 2010, data released by the National Bureau of Statistics of the United Kingdom showed that the UK’s manufacturing output in October increased by 0.6% from the previous month, the largest increase in seven months. The median estimate of 23 economists surveyed by Bloomberg had been 0.3%. Compared with the same period in 2009, UK manufacturing output rose by 5.8% in August.

The UK’s factory production in October has been the sixth consecutive month of growth. Of the 13 sectors in the UK manufacturing industry, 8 achieved growth and 2 declined. Among them, the increase in the production of transportation equipment was the largest, and the production of food, beverages and tobacco fell the most. Capital goods output increased by 1.8%, and engineering and related manufacturing increased by 2%. The production of durable consumer goods fell by 1.3%.

Statistics also show that in October, overall industrial production in the UK, including utilities, mining, and quarrying, increased by 3.3%. Among them, the mining and quarrying industry fell by 4.2% month-on-month, the largest drop since June; oil and natural gas production fell by 4.2%.

Australia’s National Bank of London economist David Tinsley, a former Bank of England official, said in a telephone interview: “This is a very good set of data. The basic driving force for UK economic growth is quite robust. The fourth quarter GDP is more favorable."

At present, the United Kingdom mainly depends on exports and investment to maintain its economic growth. In order to solve the record-setting fiscal deficit problem, the British government is preparing to accelerate the pace of public expenditure cuts and raise the value-added tax. The Bank of England is expected to announce this week that it will maintain the scale of 200 billion pound bond purchases.

In addition, recent data indicate that after the British economy achieved its fastest growth in 20 years in the second and third quarters, its recovery process continued. A report released by research institutions Markit Economics and the British Royal Institute of Purchasing and Supply said that due to the weak British pounds driving export demand for British goods, the UK’s manufacturing purchasing managers’ index rose to 58 in November from 55.4 in October, a record 16 years ago. The biggest increase.