By Daniel Hunter
UK production grew 3.7% to £355 billion as at the end of 2013, according to analysis of the latest official PRODCOM Report from the Office for National Statistics (ONS) by Santander Corporate & Commercial.
Driven by the manufacturing of motor vehicles, transport equipment and food, the value of total UK manufacturer’s product sales increased £12.5 billion to £355 billion from £342 billion in 2012. As at the end of 2013, UK manufacturer’s product sales were 8.4% higher than at the start of the economic crisis in 2008.
The analysis reveals that manufacture of games and toys was the fastest-growing manufacturing sector in the UK, with production worth £273 million in 2013 compared to £155 million in 2012; a year-on-year increase of 76.1% and a six-year high for the sector.
Other fast-growing sectors included the manufacture of assembled parquet flooring (66.7% growth); the manufacture of starches and starch products (23.8% growth); and the manufacture of motor vehicles (20.9% growth).
The biggest absolute increases were seen in the UK’s more established industries, with sales of motor vehicles and trailers increasing by £5.7 billion (20.9%); sales of other transport equipment rising by £3.6 billion (15.2%); and food sales increasing by £2.8 billion (4.5%).
Overall, the manufacture of motor vehicles is the largest UK manufacturing sector in terms of production, with £33.9 billion produced in 2013 compared to £28 billion in 2012, a year on year growth of 20.9%.
Charles Garfit, Head of Manufacturing, Santander Corporate & Commercial, said: “This analysis shows clearly that UK productive industries are in good health. While the markets have concerns about the falling oil price, this is actually great news for producers and SMEs, who will see reduced costs as a result. This positive trend for growth in UK manufacturing could well continue should the oil price remain at a subdued level.”
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