UK industrial output rises for third month in April A narrower gauge of manufacturing output, which excludes energy production, shrank by 0.2pc on the month, compared with forecasts for a 0.3pc drop. The fall was driven by a 2pc fall in transport production, though this was partly offset by a 13.8pc rise in the manufacture of basic drugs. Tuesday's figures chime with evidence from surveys of businesses that the sector returned to growth at the start of the second quarter, after contracting 2.4pc in 2012. Survey data showed that UK manufacturing output came close to growth in April, and soared to its highest level in more than a year in May, as manufacturing firms began hiring for the first time in four months. However, David Kern, chief Economist at the British Chambers of Commerce, described longer-term trends as "concerning." "Both manufacturing and total industrial output show declined compared to a year ago, and even three years ago," he said. Our manufacturing exporters are still overly focused on the weak eurozone, but low domestic demand has also limited progress We still expect the sector to record negative growth in 2013 as a whole. Manufacturing currently represents 11pc of UK output, compared with more than 75pc for services. But the Government is aiming to rebalance the economy towards manufacturing to drive exports. Recent data have also been encouraging. According to the ONS, Britain's monthly exports to China broke through £1bn for the first time in April, providing tentative evidence that UK manufacturers are finally making headway in fast-growing emerging markets.