Commenting, Graeme Allinson, head of manufacturing, transport and logistics at Barclays Commercial Bank, said: "In the past few months we've seen production pass its worst point. However, experience tells us that there is no smooth road to recovery. Although today's figures indicate a healthy move in the right direction, businesses that we talk to on a daily basis are watching for more long term trends around these statistics, pointing towards a sustained increase in demand.
“The general uplift in the economic markets parallels the positives coming out of the manufacturing sector and the real test of whether these figures are taking things in the right direction will be seen in the long term, not in the here and now.
"As well as the ONS figures' welcome news, the PMI (Purchasing Managers Index) data for July has presented the first manufacturing expansion since March 2008, and importantly similar increases are visible around the world. The current levels of Sterling against the Euro will help to sustain UK production levels. British goods entering the euro-zone remain a value proposition, bolstering their competitiveness as global production moves forward.
"An interesting time lies ahead in determining the true picture of the manufacturing sector from production statistics. The continued likelihood of extended summer closures over coming months may see a fall in production levels, but the overall effect of this will be leaner, more effective businesses when they return."
