The UK manufacturing sector bounces back after a lacklustre spring, but confidence remains low

Manufacturers need to concentrate on increasing output to growth areas, the well-know BRIC countries.

Economists are still torn on the negative effects of the longest period of bank holiday this country has ever had, as its statistical 'noise' may have clouded the economic outlook. But according to official figures published in early July, manufacturing's performance in May showed an annual increase of 2.8% compared to the same month a year ago. Output increased in 10 of the industry's 13 sub-sectors, with the largest contributions being made by the food and drink, machinery and equipment, and transport equipment industries.

The sector may have shown its biggest monthly rise since March last year, but economists warned it has still 'shifted down a gear recently', with output for manufacturing in the past three months down on the previous quarter, based on an article recently published in The Independent. Above all optimism has fallen, as indicated by a study from the accountants BDO which shows a fall to 90.1 last month, from 97.5 in May, and way down from 116.4 in February, as reported by the BBC lately.

So with a mixed international market, a weak Eurozone and confidence at low ebb a number of economists continue to fear a double dip recession. A mixed bag of messages really and manufacturers need to concentrate even more on increasing output towards the only global growth areas, the well-known BRIC countries.