Tuesday, August 09, 2016

Strong output growth in second quarter

Figures released today by the Office for National Statistics show that industrial output in Britain grew at the fastest rate for seventeen years during the second quarter of 2016.

Industrial output grew 2.1% in the three months to the end of June compared with the first quarter of the year.

Memo to those calendar-challenged Brexit supporters still fighting the referendum campaign and sending out tweets suggesting that the quarter two figures disprove "Project Fear" - all except the last week of that quarter came before the referendum and you are this guy.

In fact these figures for strong growth in output are due to a particularly strong April.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The 2.1% quarter-on-quarter rise in production in the second quarter... mainly reflected the 2.3% month-to-month jump in production in April."

Lee Hopley, chief economist at EEF, the manufacturers' organisation, said: "Clearly, indicators of sentiment post referendum suggest that we've hit the high point for manufacturing this year.

"Amidst the wavering levels of confidence however we should take away some positive news, firstly that manufacturing entered this period of uncertainty from a relatively strong stance and the weaker exchange rate could yet bring benefits on the export side."

No comments: