Friday, December 07, 2012
Bad month for industry
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

October was a bad month for industry. Britain's 0.8% drop in overall industrial production was bad enough, including as it did a 1.3% drop in manufacturing outout, though it was not as dire as Germany's 2.6% slump.

The UK figures have already got analysts on triple dip alert, despite an encouraging rise in third quarter construction orders, also announced today. The arithmetic for industrial production is pretty horrible - in October it was 2.4% below the third quarter average.

It will need something special, such as a rebound in food production (down 3% month-on-month in October) and a turnaround in North Sea production, assuming some of the slump is shutdown related. In October mining and quarrying, most of which is the North Sea, was 15% below its third quarter average and 21% down on a year earlier. Not so much a decline as a collapse. More here.