Gas And Oil Boost UK Production Figures

Official figures show that industrial production is on the rise, while manufacturing has been struggling.

Industrial production rose 0.4% overall, boosted by an increase in mining output and a 7.3% rise in the oil and gas industries.

Year-on-year, the industrial production increase was 2.1%.

The results were released on Tuesday by the Office for National Statistics (ONS), and were much better than expected; predictions had suggested industrial production would fall by 0.2%, and would increase by only 1.6% in the year to May.

But the news was not all good. Manufacturing output continues to fall despite expectations it would rise this month.

Manufacturing production levels dropped 0.6%, with a boost of only 1% year-on-year.

It was expected to jump 0.1% in the month and increase 1.8% year-on-year.

Manufacturing also performed badly in April with a drop of 0.4%.

As a result of the figures the British Chamber of Commerce has urged Chancellor George Osborne to offer more help to the manufacturing industry in his budget on Wednesday.

David Kern, Chief Economist of the British Chambers of Commerce, said: "Longer term comparisons show that both manufacturing and total industrial production are still well below their pre-recession levels in Q1 2008, in contrast to the thriving services sector.

"Although manufacturing is coping with very difficult global circumstances, the sector is facing serious structural problems.

"The government must make every effort to encourage manufacturing firms to explore international export markets, including those beyond the European Union."