-Jul manufacturing output +3.2% m/m; -0.5% y/y
-Jul industrial production +2.9% m/m; -0.8% y/y
LONDON (MNI) – Manufacturing bounced back sharply in July following
the Jubilee led downturn in June, a sign that GDP is set to bounce back
in the third quarter.
The data, which were far stronger than forecast, put trend growth
in manufacturing back in positive territory, suggesting the sector is
faring better than many had thought. Given the erratic data over the
Jubilee period, however, we need to see a couple more months of data to
gain a better picture of the state of the sector.
Manufacturing output rose 3.2% on the month in July, the strongest
rise since July 2002 and was down 0.5% on the year. This was way above
the median forecast for a gain of 1.8% on the month and decline of 2.5%
on the year.
Output in June was depressed by the Queen’s Jubilee celebrations
with the two Bank holidays during the month, cutting the number of
working days.
In the three months to July, manufacturing output was up 0.2%
compared with the previous three months, the strongest since July 2011.
The wider measure of industrial production rose 2.9% on the month
and was down 0.8% on the year, compared with the median for an increase
of 1.7% on the month and fall of 3% on the year.
The large bounceback in production in July, points to a good start
to the quarter for GDP growth which is forecast to bounceback from a
decline of 0.5% on the quarter in Q2.
-London newsroom 4420 7862 7491 email: puglow@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
