Manufacturing gets a boost

Recovering car production pushed the manufacturing sector to its strongest growth in more than three years during July, official figures showed today.

Output grew by 0.9% over the month — well ahead of forecasts and the best performance since May, 2006 — the Office for National Statistics (ONS) said.

Car manufacturing grew by 10.4% during the month as experts seized on the latest signs that the ailing UK economy is emerging from recession.

Howard Archer, of IHS Global Insight, said the figures were a “really nice positive surprise”.

Car manufacturing has been boosted by initiatives such as the scrappage scheme as well as factories restarting production after shutdowns at the height of the recession.

The second successive month of growth overall was helped by a strong performance from the chemicals, rubber and plastics industries — although the electrical, printing and publishing sectors were stuck in the doldrums.

Manufacturers have been helped by the huge stimulus to the economy given by record low interest rates of 0.5% as well as efforts to boost the money supply.