UK Production and Manufacturing both fall 1.2% for the year – hardly an economy ‘slowly healing’ is it Mr Cameron?

In a delightful quirk of irony the moment that Cameron was desperately trying to CONvince the UK public that the economy was ‘healing’, albeit ‘slowly’, we got a couple of data points out of the ONS that shows that the economy is anything but ‘healing’.

Note that whilst the UK PM is trying to sell the idea of an economy on the mend the headline just below blows that theory right out of the water declaring that the ‘global recovery getting weaker’.

Both the Index of Production and the Index of Manufacturing (you know, that parts of the economy that record low interest rates are meant to be helping), fell 1.2% over the past year. From the report:

• The seasonally adjusted Index of Production fell by 1.2 per cent in August 2012 compared with August 2011

• The seasonally adjusted Index of Manufacturing fell by 1.2 per cent in August 2012 compared with August 2011

• Production fell by 0.5 per cent between July 2012 and August 2012, with manufacturing falling by 1.1 per cent

• The earliest period open for revision is July 2012

The seasonally adjusted index of production fell by 1.2 per cent in August 2012 compared with August 2011. This is the 17th consecutive monthly fall on the same month a year ago….

Hardly ‘slowly healing’ now is it Mr Cameron, seems more like it’s getting worse.

The seasonally adjusted index of manufacturing fell by 1.2 per cent in August 2012 when compared with August 2011. Nine manufacturing sub sectors fell and four rose. For this period the largest negative contributions in manufacturing output were: the manufacture of chemicals & chemical products, which fell by 9.0 per cent, followed by the manufacture of food, beverages & tobacco, falling 3.0 per cent. Conversely, the largest increase came from the manufacture of transport equipment, which rose by 11.0 per cent.

(click for sharper image)

This report comes on the back of the double-whammy last week that was the Services and Manufacturing PMIs – all of which doesn’t bode well for unemployment in the coming months.

But what it does bode well for is all those people who think the BoE will announce yet more money printing sometime in November/December. After the raft of troubling data the past couple of weeks a (more) devalued pound is sadly the most likely outcome now.

Related posts:

1. UK production contracts 1.7% – Bank of England to print more money early in the New Year?
2. Producer prices in the UK fall giving the Bank of England more scope to print
3. UK manufacturing PMI plunges at second fastest pace in 20 years – so will the Bank of England print next week in response?
4. UK house prices fall 2.3% for the year: Gold:House ratio now at 151:1
5. UK PMI: Manufacturing falls to lowest level since Q2 2009 whilst prices surge

Link to this article: : http://www.goldmadesimplenews.com/analysis/uk-production-and-manufacturing-both-fall-1-2-for-the-year-hardly-an-economy-slowly-healing-is-it-mr-cameron-8301/

Posted by Thomas Paterson on Oct 9 2012. Filed under Analysis. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.