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| Version 0 | Version 1 |
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| Weak rise in UK manufacturing blamed on strong pound and Ukraine crisis | Weak rise in UK manufacturing blamed on strong pound and Ukraine crisis |
| (about 1 hour later) | |
| Output from Britain's factories rose by a smaller than expected 0.3% in June and remains more than 7% below its pre-recession peak, according to official figures. | Output from Britain's factories rose by a smaller than expected 0.3% in June and remains more than 7% below its pre-recession peak, according to official figures. |
| Although the economy as a whole has now made up the ground lost in the "great recession of 2008-09", data from the Office for National Statistics showed that manufacturing is still struggling. | |
| City analysts blamed the 10% rise in the value of the pound – which makes exports dearer – and rising tension between Russia and the Ukraine for industry's failure to bounce back from a drop in output of more than 1% in May. | City analysts blamed the 10% rise in the value of the pound – which makes exports dearer – and rising tension between Russia and the Ukraine for industry's failure to bounce back from a drop in output of more than 1% in May. |
| James Knightley, economist at ING bank, said there was a disparity between the official figures and survey evidence which suggested a much stronger performance by manufacturing. | James Knightley, economist at ING bank, said there was a disparity between the official figures and survey evidence which suggested a much stronger performance by manufacturing. |
| "In general it is pretty disappointing stuff and highlights the lack of rebalancing away from services to more production-led growth. Nonetheless, given the near-universal strength seen in the manufacturing surveys the true picture remains unclear." | "In general it is pretty disappointing stuff and highlights the lack of rebalancing away from services to more production-led growth. Nonetheless, given the near-universal strength seen in the manufacturing surveys the true picture remains unclear." |
| The ONS said that manufacturing output in the second quarter of 2014 – considered a better guide to the trend than one month's figures – was 0.2% up on the first quarter but 7.4% below its position in the first quarter of 2008, after which the economy started to contract. | |
| Industrial production – which includes mining, water supply and electricity and gas output – was also up by 0.3% between May and June and also up by 0.3% on the quarter. | Industrial production – which includes mining, water supply and electricity and gas output – was also up by 0.3% between May and June and also up by 0.3% on the quarter. |
| The ONS had pencilled in a quarterly rise of 0.4% in industrial production for its first stab at calculating growth in the second quarter of 2014, but said the slightly smaller increase would not result in a change to its 0.8% estimate. | The ONS had pencilled in a quarterly rise of 0.4% in industrial production for its first stab at calculating growth in the second quarter of 2014, but said the slightly smaller increase would not result in a change to its 0.8% estimate. |
| Howard Archer, an economist at IHS Global Insight, said: "A smaller than expected rebound in manufacturing output in June adds to signs that the sector has recently lost some momentum from robust levels at the start of this year. | |
| "This is disappointing for hopes that UK growth can be broad based on a sustained basis going forward and less dependent on services sector. Of course, given its size, the services sector will always be the key growth driver." |