Most of the recent news concerning both the UK and European countries has been bad. In the UK specifically the number of people without a job has risen and the economy is in a bad shape. Despite the fact that many businesses are going under and most people have less money in their pockets, there are still some hopeful signs on the horizon.

Bucking the trend.

In October there was a sharp increase in UK car production and altogether last month the number of cars produced was 128,654, more than 14% up on the same period a year ago. While most news concerning the economy and the future for UK businesses is not particularly bright, the considerable increase in car production, compared to a year ago, is the one bright spark.

While car production from January to October of this year was up 5.8% overall on the same period last year, commercial production as a whole was down 2.7%. The chief executive of SMMT said that last month, UK car manufacturing was the highest it’s been since March.

The knock-on effect.

You may of course wonder who has the money to buy a new car these days but it’s got to be good news for a number of businesses. Those people involved in the manufacturing and production of registration plates would likely have seen a similar rise in production this year. An increase in UK car production must mean an increase in business for a number of different businesses across the country. Tyre manufacture and sales are likely to be up as are the amount of number plates for sale.

There are so many extra things that go into a car these days that an increase in their production could be beneficial for a number of other manufacturers. There are now few cars that don’t come equipped with either a radio, CD player or both, which means an increase in the sale of such items. Windscreen manufacturers also benefit when car production goes up.

Falling demand.

Under the current economic pressures both in Britain and in Europe as a whole the rise in the number of cars manufactured is a bit of an anomaly. It would be interesting to know how many of the cars that were produced, have actually been sold. Even though countries outside Europe have also suffered from what has become a global economic crisis, there is still a demand from some of those countries for cars and for engines built in the United Kingdom.

Demand for new cars in the UK itself has actually fallen, which is no surprise given the financial strain that is affecting many British families. Most of the new cars that come off the production line are being exported abroad, which is one piece of good news for the economy. Some are calling for the Chancellor to encourage greater investment from the private sector. If Britain was manufacturing and producing more, as they were in the past, this might result in a further growth in exports and more money for public services.

This post was written by James Harper on behalf of The Plate Market, the online market for car registration plates and number plates for sale.