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Factory Output Surges To The Highest Level In 16 Years

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The Office for National Statistics said that factory output grew 0.6% in the month, double the expected rate and the highest since March.

This took the three-month change to 5.6% indicating the highest manufacturing output since 1994.

The official data confirms findings compiled by the Chartered Institute for Purchasing and Supply from companies which receive the output.

The CIPS index showed that the employment rate in the sector rose significantly as well.

However, the wider measure of industrial production fell 0.2%, despite expectations of a rise of 0.3%.

The decline was due to sharp falls in oil and gas extraction as well as mining, after maintenance work was carried out earlier than usual this year.

Chris Hinde from the trade newspaper Mining Journal told Sky News he expects the historical decline in British mining to continue.

The new figures are unlikely to affect expectations that the Bank of England will leave interest rates on hold for the foreseeable future as the effect of upcoming spending cuts are considered.

However, they have prompted questions on whether the rise in manufacturing may help salvage the economy.  

Time for Merv to stop mincing and start acting!

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No good making more if there are not the customers with the disposable income after tax, debt and basic living costs to be able to buy it....in this country and overseas. :unsure:

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Sorry, I didn't think we made anything in this country any more?

It's based on data from the only UK factory left. The baked bean factory in Manchester.

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It's based on data from the only UK factory left. The baked bean factory in Manchester.

We export more to Ireland then we do to China, India, Brazil combined. What do we export to Ireland baked beans?

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We export more to Ireland then we do to China, India, Brazil combined. What do we export to Ireland baked beans?

So the UK exports more to 5 million people than it does to 2.7 billion people.

That can't be right surely.

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We export more to Ireland then we do to China, India, Brazil combined. What do we export to Ireland baked beans?

It's not that we export a lot to Ireland, we export very little to BRICs. What could we export that they can't make cheaper themselves?

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the problem is not so much a levelling on volumes, its the margin squeeze that manufacturers need to worry about.

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Unexpected fall in industrial production:

"However, the wider measure of industrial production fell 0.2%, despite expectations of a rise of 0.3%."

http://uk.news.yahoo.com/5/20101207/tuk-uk-factory-output-twice-the-rate-exp-45dbed5.html

Total industrial production includes oil and gas. In the summer months the maintenance is done on the rigs in the north sea so production always falls in the summer months.

The good news was that manufacturing of machinery and equipment grew at 16.8%, so stuff that we actually make.

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What margin squeeze?

commodities up....prices flat...as the CPI suggests.

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Sorry, I didn't think we made anything in this country any more?

I used to manufacture stuff. The company who bought my business when I retired, three years ago, tell me that I got out just in time, turnover is down 350% from my last trading year. They haven't lost any customers, but the market (electronic controls for commercial buildings) is as dead as a dodo.

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I used to manufacture stuff. The company who bought my business when I retired, three years ago, tell me that I got out just in time, turnover is down 350% from my last trading year. They haven't lost any customers, but the market (electronic controls for commercial buildings) is as dead as a dodo.

Maybe they just aren't as good as you (were) at running the business...

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Maybe they just aren't as good as you (were) at running the business...

I don't think that's the reason as I hadn't put in any sales effort for years, just relying on existing customers and word of mouth. 90% of the turnover came from about ten customers, one of whom accounted for 60%+. The big customer has been absolutely dead for the last couple of years, only placing orders for a few spares here and there. When I sold the business, I told them that I thought a recession was about to hit and that they'd need to put in some real sales effort, which I wasn't interested in doing as retirement had been my plan for the past few years, they didn't put in the sales effort and are now suffering for it.

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commodities up....prices flat...as the CPI suggests.

That's how things are in my factory manufacturing lorry tyre retreads. Raw materials prices are increasing all the time. Natural rubber is at an all time high yet it's difficult to pass the costs on as our customers are struggling as it is. Luckily we are picking up new customers all the time as many haulage firms continue to cut costs and move to retreads rather than buying budget Chinese brands. Our next price rise will be in the next few months. Michelin are increasing their prices by 5% in January along with several other major brands.

Edited by Pent Up

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I used to manufacture stuff. The company who bought my business when I retired, three years ago, tell me that I got out just in time, turnover is down 350% from my last trading year. They haven't lost any customers, but the market (electronic controls for commercial buildings) is as dead as a dodo.

How can turnover be down more than 100%?

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Sorry, I didn't think we made anything created any wealth in this country any more?

Oh we still do, but real wealth generation only accounts for <20% of the economy. Lots of people running about in invisable clothes are making up the other 80%.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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