Manufacturing output for June 2012: -2.9% on the month, -4.3% on the year
Commenting on the manufacturing output figures for June, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“While many expected a large decline in manufacturing output in June due to the Queen’s Jubilee, the decline was less than some predicted, and less than the ONS implied in its provisional GDP estimate for Q2 2012. However the decline is disappointing, and the latest index of production indicates that manufacturing output will record a 2% fall in 2012, and the economy as a whole will be in negative territory.
“Longer-term trends in manufacturing are still disappointing. Manufacturers and businesses in other sectors are adjusting to a more difficult reality of weaker growth prospects. But British businesses have considerable potential to make progress, and it is down to the government to help them fulfill this. As the government continues with steps to reduce the deficit, and problems in the eurozone continue, more action is needed to help the economy return to growth.
“More QE is not the most effective remedy. The government should concentrate on aggressive deregulation, infrastructure spending, ensuring the Funding for Lending Scheme is successful, and steps aimed to help manufacturers, and other businesses, export.”