8 July 2009

… While U.K.'s manufacturing output down

While China's economy is showing some growth, the U.K.'s manufacturing output fell by 1.2% in the second quarter compared to the previous three months.

While no one expected a huge turnaround from earlier in the year, the data just shows that a rapid recovery from the recession is not occurring.

Output of all production industries dropped by 1.8% in the quarter.

The Office for National Statistics said manufacturing output was 12.3% lower than in the comparable period a year earlier.

Vicky Redwood, economist at Capital Economics, said the numbers suggest a recovery in manufacturing was weaker than earlier numbers indicated.

But Redwood added “industry still looks likely to post a much smaller fall in the second quarter overall than in the first quarter, thus boosting quarterly GDP growth.”

For related information, go to www.isa.org/productivity.