UK manufacturing rises by 1.2% in September, industrial production up 0.9%

Hopes of a British manufacturing renaissance were boosted on Wednesday by news that output from the sector rebounded in September, after an August slowdown.

The Office for National Statistics said manufacturing output increased by a better-than-expected 1.2% in September, reversing the 1.2% drop a month earlier.

Industrial production, which also includes mining and quarrying, and energy supply, was up by a more modest 0.9% last month.

The ONS said the relatively strong performance from manufacturing meant industrial production increased by 0.6% over the third quarter of the year – modestly higher than the 0.5% included in the first estimate of third-quarter GDP last month.

City analysts said the figures suggested that despite high-profile setbacks such as the threatened closure of BAE dockyards, manufacturing is continuing to recover from the precipitous decline seen during the great recession of 2008-09.

The coalition is hoping that a manufacturing revival – dubbed the “march of the makers” by the chancellor – will help to rebuild UK plc, and a continued improvement in the sector could help to assuage fears of a lopsided economic recovery, too focused on consumer spending.

“A marked rebound in output in September from August’s surprise drop indicates that the manufacturing sector’s upturn remains intact and it enjoyed a very decent third quarter overall,” said Howard Archer, at the consultancy IHS Global Insight. However, overall industrial production still remains more than 12% below its peak in mid-2008.

The ONS said the pharmaceutical sector – a long-time strength for the UK – had performed particularly strongly in September, as had transport, led by Britain’s thriving carmakers, and computers.

The Society of Motor Manufacturers and Traders said on Wednesday that car sales had increased by 4% in the year to October. That was the 20th successive month of growth, though the pace has slowed since the start of the year. The SMMT said it now expected a total of 2.25m vehicles to be sold in 2013 – 10% up on 2012.