Thursday, January 12, 2012
Industry is definitely in recession
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

However many special factors you cite, the picture for industry in Britain is not good. Overall industrial production in November was down by 3.1% on a year earlier, while manufacturing fell by 0.6%. Between October and November overall industrial production dropped by 0.6% while manufacturing slipped by 0.2%.

The weakness of industrial production particularly reflects weak mining and quarrying output, including North Sea, down 14.6% over 12 months, and energy supply, partly reflecting mild weather, down 8.6%. But the performance of manufacturing is also disappointing.

As for the fourth quarter arithmetic, industrial production in October-November was 1.2% down on its third quarter average. Achieving any growth in gross domestic product in this context will be very difficult. More here.