–Mar manufacturing output +0.9% m/m; -0.9% y/y
–Mar industrial production -0.3% m/m; -2.6% y/y
LONDON (MNI) – Manufacturing output bounced back strongly in March,
but growth remained lacklustre in the first quarter as a whole, figures
released by National Statistics revealed Thursday.
The latest data on production imply no revision to first quarter
GDP which fell 0.2% on the quarter, prompting some economists to
forecast further Quantitative Easing by the Bank of England at today’s
Monetary Policy Committee meeting.
Manufacturing output rose 0.9% on the month in March and was down
0.9% on the year, above the median for a 0.5% monthly gain and yearly
fall of 1.2%. This followed a downwardly revised fall of 1.1% in
February.
In statistical terms this means that the manufacturing sector is
not in a technical recession, but output was only flat in Q1 compared
with Q4 2011.
The wider measure of industrial production fell 0.3% on the month,
as the record hot weather during March curbed output of the utilities
companies, which fell 6.4% on the month compared with a rise of
5.7% in February. This was mainly due to a 17.6% fall in gas production.
Over the quarter, industrial production fell 0.4% compared with the
previous quarter, in line with the estimate used in the calculation of
Q1 GDP figures.
Data from the CIPS manufacturing PMI had pointed to a bounceback in
output in March but the survey measure eased back in April, pointing to
weaker growth.
Most analysts think the BOE will hold fire on further monetary
easing following its meeting today, but many described the decision as
being on a knife edge. Seven out of 34 analysts said they expected to
see the BOE opt for further QE this month.
–London newsroom 4420 7862 7491 email: puglow@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]