"Today's manufacturing figures for May 2006 were positive, but this must not be used to support the clamour in some quarters for higher interest rates. Though manufacturing output recorded a welcome improvement in recent months, it is much too early to talk about sustained recovery."
"Manufacturing output rose by 0.5% between April and May 2006, slightly better than expected. In the three months March-May 2006, manufacturing increased by 0.7% compared with the previous three months, and by 1.0% compared with the same period a year ago.
David Kern concluded: "The upturn seen in 2006 follows a decline of 1.1% in 2005 as a whole, and the sector has recorded full-year declines in output in three out of the last five years. The recent manufacturing recovery is still fragile and could easily go into reverse. Renewed manufacturing setbacks are a serious risk. Calls for higher interest rates are unjustified and should be forcefully rejected."