Rise in manufacturing confuses picture of UK economy

The figure contrasts strongly with the fall of two per cent recorded for August and is the highest increase for over seven years.

The latest figures on manufacturing from the ONS showed that 10 out of 13 manufacturing sub-sectors grew in September. The strongest performers were manufacturers of electrical and optical equipment transport equipment and other manufacturing.

The stronger manufacturing data adds to speculation that the UK may be out or on its way out of the recession. Two weeks ago the ONS said that third quarter GDP fell by 0.4 per cent between July and September, meaning that the UK is technically out of recession.

The news came as a surprise to many analysts who were seeing signs that consumer confidence was returning and predicted a rise in GDP that would have signalled the end of the recession.

When power generation and natural resource extraction are included the figure for September manufacturing is a 1.6 per cent increase, also the highest in over seven years.

According to the ONS the increase in production is due to the reopening of factories following a break in August.