Output from UK companies involved in manufacturing equipment and parts continued to show modest improvement in August 2016, according to Office for National Statistics (ONS) data. Output in August was 91.6 on an index basis (2013 = 100), similar to April levels, and the highest since the first half of 2015. The 6 month moving average for output, which includes construction and mining equipment output, continues to show modest recovery, after hitting a low point in March 2016. However, output in the first 8
Output from UK companies involved in manufacturing equipment and parts continued to show modest improvement in August 2016, according to Office for National Statistics (ONS) data. Output in August was 91.6 on an index basis (2013 = 100), similar to April levels, and the highest since the first half of 2015. The 6 month moving average for output, which includes construction and mining equipment output, continues to show modest recovery, after hitting a low point in March 2016. However, output in the first 8 months of the year from January to August is still 2.6% below the same period in 2015.
On a quarterly basis, output in Apr/Jun was 1.4% above Jan/Mar quarter, which in turn was 0.7% above Oct/Dec 2015. This pattern of modest improvement in output is similar to the pick-up in UK exports of construction and earthmoving equipment, and is believed to be the reason for the modest improvement in overall output levels. UK demand for equipment in the first half of 2016 has been weak, in line with a weak construction market, and has not provided any stimulus for output levels for equipment.
Analysis of the data from the ONS on an annual basis shows that industries included within the Machinery & Equipment NEC category that are relevant to the Construction Equipment Association (CEA) account for around 60% of the total output reported. This includes construction, mining and lifting equipment and parts. The remainder of industries within the Machinery category includes agricultural equipment, office equipment and a number of other industries.
ONS output data is based on company turnover collected on a monthly basis. Comparison of this data on an annual basis with Off-Highway Research production data for construction equipment shows very similar year on year % movements. As a result, monitoring of ONS monthly data is judged to be a useful indication of production/activity levels for UK construction equipment and parts.
