Food sector manufacturing on the up
The UK food and drink industry has bucked the general trend of declining manufacturing output with a 0.5% increase in June 2011 compared to the same month in 2010, according to new figures.
The Office for National Statistics results published this week show that while food and drink production output increased, the figures are in stark contrast to the manufacturing sector as a whole which has decreased its output by 0.5%.
The latest Food and Drink Federation business confidence survey has also revealed findings which indicate that the food and drink manufacturing sector is one of the most resilient. UK sales remain strong and have grown over the past quarter for almost two-thirds of respondents, with 76% expecting growth over the next three months and encouragingly most companies expect exports to rise over the next quarter. This is against a backdrop of rising commodity prices.
“The stability in our sector is due to our industry’s ability to innovate, develop new products and market them effectively to appeal to consumer tastes,” says Terry Jones (pictured), FDF’s director of communications. “Where most other sectors are struggling in 2011, food and drink output is growing and our track record demonstrates an industry that is reliable and capable of growth in adverse conditions.
“However, optimism among food manufacturers about the general business environment remains mixed. Increasing commodity prices are clearly seen as a threat to future growth in the sector. This means that our continuing work with Government to remove other barriers has taken on even greater importance. This could unlock the potential of our sector while benefitting the wider UK economy.”