Food manufacturing: a stabilising force in uncertain economic times

The Office for National Statistics published results showing that the UK food and drink industry was the only manufacturing sector to record an increase in production.

In fact over the last two years food and drink producers have maintained the most consistently stable levels of production of all the manufacturing sectors as well as exhibiting the highest index level throughout the month of May 2010.

Production Index for Manufacturing

Production Index for Manufacturing

The Production Index for Manufacturing graph above shows an index of production adjusted for seasonal changes and inflation. An index fixes production for all sectors at 100 on a particular date (in this case at a date in 2006). If production levels are higher than at 2006 levels then the index will be greater than 100.

As shown above no manufacturing sectors in May 2010 were operating at above the levels they were producing in 2005, although food and drink manufacturing had the highest index rating at 98.9.

The stability in our sector is due to the success in increasing exports and maintaining demand levels throughout the economic crisis. It reflects in our industry's ability to innovate and develop new products and market them effectively to appeal to the changing consumer tastes seen since the onset of recession.

The diversity of products within our industry has also bolstered the stability of the sector as a whole with high demand for meat, fish, fruit, vegetables, soft drinks and confectionary contributing to the overall index increase between December 09 and May 2010.

Where all other sectors have struggled in 2010 food and drink is growing and our track record demonstrates an industry that is reliable and capable of growth in adverse conditions.


Last reviewed: 26 Jul 2010