6 July 2005, 13:14  UK's manufacturing sector steady in May

There was further evidence this morning suggesting that the UK's manufacturing sector -- which accounts for around 18 pct of the country's GDP -- has steadied following some sharp output declines earlier this year. The office of National Statistics revealed that manufacturing output in May was unchanged from the previous month, better than the 0.3 pct decline predicted by economists. Helping output was a significant rise in food, drink and tobacco. Though May fell short of the 0.5 pct improvement recorded in April, it was the second consecutive month not to register a decline. Output fell in each of the first three months of the year, culminating in the sharp 1.9 pct slide recorded in March. On a year-on-year basis, the statistics office said ouput was 1.7 pct lower against expectations of a 2.0 pct decline. In the three months to May, manufacturing output was 1.9 pct lower than the previous three months against the 1.6 pct decline recorded in April. Over the three months, all 13 sub-sectors that make up manufacturing output were lower. Apart from the Jubilee-effected summer of 2002, May was the first time since May 1980 that all 13 were lower. The statistics office said industrial production, which accounts for around 22 pct of GDP, increased by 0.1 pct in May from the previous month, better than the 0.2 pct fall penciled in by economists. This was the second consecutive monthly increase following three successive declines. On a year-on-year basis, the statistics office said industrial production was 1.9 pct lower against expectations of a 2.4 pct decline. In the three months to May, industrial output was 1.3 pct lower than in the previous three months, against the 1.4 pct fall recorded in April

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