With the British economy now back in recovery, growth objectives are now firmly back on the business agenda. A look at the top 10 fastest growing industries by annual percentage change in output to Q1 2015 shows just where those ambitions are gathering real momentum, as identified by the Lloyds Bank Economic Research team.
The top three
1st – CHEMICAL MANUFACTURING
The UK is one of the world's top chemical producing nations, with a high performing industry achieving outstanding levels of growth, exports, productivity performance and international investment.1 Chemical manufacturing in this case refers to what is known as 'other chemical products' and covers a range of products primarily used as inputs into other industries. Examples include glues, photographic chemical materials and explosives. This is a growing segment of the wider chemicals industry, and, furthermore, a positive indicator of the strength of the industries it supplies.
2nd – SHIP BUILDING
There has been significant growth in the short-term in this sector, which may be due to the provision of new contracts from the Royal Navy, including the production of six Type 45 Destroyers and the two Queen Elizabeth Class aircraft carriers.2
3rd – AEROSPACE PRODUCTION
The UK aerospace sector is growing several times faster than the UK economy, directly employing 109,100 individuals, 3,300 of which are apprentices and trainees.3 Its success has been accredited largely to investment by government and industry in developing new technology and skills.4
The rest of the top 10:
4th – Furniture Production
5th – Information Services
6th – Nannies, Cleaners etc
7th – Hotels etc
8th – Land Transport
9th – Computer Programming and Consultancy Services
10th – Other Mining and Quarrying
Looking at the broad picture, UK manufacturing output has grown more slowly than the UK economy as a whole over the past 12 months, which may reflect tepid export growth. Services have been the primary driver of growth.
The presence of 'Hotels' and 'Nannies, Cleaners' in the top 10 highlight growing confidence in economic recovery and growth amongst both businesses and consumers. This reflects the findings of Lloyds Banks' latest Business in Britain report, which shows business confidence holding steady: at 43% the average of the net balances of expected sales, orders and profits was unchanged between the January and July results.5
The diversity reflected in the top ten is an encouraging sign of robust recovery, a trend it is hoped will continue long-term.
While all reasonable care has been taken to ensure that the information provided is correct, no liability is accepted by Lloyds Bank for any loss or damage caused to any person relying on any statement or omission. This is for information only and should not be relied upon as offering advice for any set of circumstances. Specific advice should always be sought in each instance. The views and opinions set out in this article are those of the author, and do not reflect the views of Lloyds Bank plc nor are they endorsed by Lloyds Bank plc.