Britain’s improved economic growth is gaining traction, as March showed better numbers for the strengthening manufacturing sector and increased industrial output. These positive numbers come as a surprise to many economists.<br />
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According to the Office for National Statistics (ONS), the United Kingdom’s manufacturing output rose by just over 1% in March, following an impressive 0.7% increase the month before. Approximately 7% of the British economy consists of manufacturing.<br />
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This growth comes as a welcome indication that the UK economy is improving and that markets are growing. Economists only forecasted a 0.3% increase for March. This growth is partially due to an increased demand for UK machinery, equipment and cars overseas.<br />
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In addition to manufacturing, Britain’s electricity and gas output jumped by more 2% last month, which also happened to be the coldest March in more than 50 years.<br />
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Lee Hopley, a chief economist at the manufacturers’ organisation <a href="http://www.eef.org.uk/"; target="_blank" title="eef.org.co.uk - new window">EEF</a>, sees “"encouraging gains across the board, with almost all sectors posting some growth and ongoing strength in transport and electrical equipment sectors.”<br />
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"Taken with the improvement in the PMI (Purchasing Managers' Index) earlier in the month, the data appears to be moving in a more positive direction. However, a smooth recovery path is not assured, as uncertainties in the external demand environment are likely to stay with us in the coming months,” Ms Hopley continues.<br />
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The better-than-expected data, according to economists, shows an encouraging step in the right direction for the UK economy.