CAR production in Britain accelerated last month as domestic consumers increased their demand for UK-made cars. The jump has fuelled hopes of a revival in British manufacturing. According to industry group the Society of Motor Manufacturers and Traders (SMMT), UK carmakers produced 28,895 vehicles for the home market in July, up 38 per cent on last year. The increase helped lift total UK car production by seven per cent to 128,870 cars, compared with 120,391 for the same month a year ago. This week Nissan said it planned to expand its Sunderland factory, Britain’s largest car-making plant, by 25,000 sq ft. Jaguar Land Rover is doubling the size of its West Midlands engine plant as demand for its vehicles from Asia has shot up.
Despite ongoing uncertainty in the eurozone, to which UK exports most of its cars, production for foreign markets rose by 0.6 per cent in July. Mike Baunton of the SMMT said: "Car manufacturing is continuing to follow the wider UK trend for more positive economic growth ... We are starting to see slight signs of recovery from Europe which will support stronger production levels this year." According to The Guardian, the news is seen as another sign of sustained economic recovery in the UK. On Wednesday, the Confederation of British Industry said British manufacturing orders were at their strongest for two years, with both domestic and export orders picking up. Rachel Pettigrew, senior economist at the manufacturers' association EEF, said the manufacturing sector was on course for growth of 1.9 per cent in 2014. ·