UK Car Manufacturing at 6 Year High

October 23, 2014 Share Print 0

UK car manufacturing is in the midst of its strongest run of growth in 6 years, despite a drop in production in September.

More than 1.13m cars rolled off production lines in British factories in the first nine months of the year. This is up 0.6% on a year earlier and the best performance over the period since 2008, according to the Society of Motor Manufacturers and Traders (SMMT).

However, car manufacturing fell 2.8% in September compared with a year earlier, with 137,068 cars made. The number was dragged down by cars built for export, which were down 8.1% at 102,947. Cars made for UK buyers however were up 17.7% at 34,121 amid thriving domestic demand for new cars.

The SMMT said the drop in output in September was down to planned re-tooling of production lines as factories prepared for model changes, but the fall in exports also coincides with a renewed slowdown in the eurozone, the UK’s main trading partner.

“The continued investment by the sector into new models means the September figures took a slight dip as some plants underwent re-tooling but it is these same new models which will help increase production volumes in the future,” said Mike Hawes, the SMMT’s chief executive.

via The Guardian

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.