Comment on the Office of National Statistics (ONS) manufacturing figures for May 2009

Graeme Allinson, Head of Manufacturing, Transport and Logistics at Barclays Commercial Bank, said:

"Manufacturing seems to be reaching the bottom of the recessionary curve with a marginal 0.5 per cent decline in output between April and May and a slowing rate of 1.8 per cent in the three months to May.

These figures indicate a continued slowdown in the rate of decline, and point the way towards eventual recovery.

"The PMI (Purchasing Managers Index) data for June shows a slower but nonetheless continued rate of improvement in manufacturing output.

This reinforces the hope that the destocking which held the sector back in the first quarter will now give way to a re-invigorated supply chain and a pick-up in overall production levels.

"Globally, Sterling remains competitive and will act as a supporting stimulus as manufacturing once again finds its feet.

The increase in both production levels and demand in India and China are a good indication of international recovery, and this can only be good for UK manufacturers.

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