Fingers crossed for British manufacturing in 2013

First came the news that Honda was planning to make 800 jobs redundant at its Swindon plant due to the fact that there was not much demand for the vehicles from the European market. As the auto sector has been one of the bright economic spots while the industry overall has fallen, the news is depressing.

However, there is one word of caution for those who are dismissing manufacturing, because manufacturing actually makes up about 10% of the gross domestic production while oil and domestic energy and gas make up about 18% of the entire national output.

The construction sector also had some disappointing figures when you look at the fact that it only makes up about seven percent of the industry. The only sector left to take a look at is the service sector and since there is only data from October it is not a reliable call to make yet.

However, if you take a look at the sales data that is already available it does not look that great for a sector that is supposed to make up about ¾ of the GDP. Part of the reason may be that industrial production during the months of October and November actually fell by about 2.3% so unless there was a serious growth rate in December year on year the figures are going to have fallen.

Construction had a slightly better outlook when you look at the rise it saw in October as values shot up to almost 1.8% more than they previously were. The service sector presents with mixed evidence and consumer spending certainly was not that great during the autumn months although the time period right before Christmas did see some increase in activity as last minute shoppers hit the stores.