British industry is struggling and the Brexit effect hasn't even hit yet
It might look good but but both fell from a strong base in April. And that's before accounting for the potential crash as a result of the UK's vote to leave the European Union in June.
According to the latest figures from the Office of National Statistics, released on Thursday, industrial production fell by 0.5% in May - the most recent data period. That's way, way below the 2% growth seen in April, but a beat on the expected 0.9% fall.
Manufacturing production also beat expectations, falling 0.5% as well, against the same 0.9% fall forecast. Once again, it was a huge drop from April, when the reading came in at 2.3%.
On a year-on-year basis, both numbers were also big beats, with industrial production growing 1.2% against forecasts of a 0.5% rise. Manufacturing grew 1.7% y-o-y. It was expected to grow just 0.8%.
Here's the ONS' chart showing May's slip as part of the longer term trend.
ONS
Although numbers were better than expected, and April's base was unusually high because of a cold snap. The numbers are worrying, largely because they were taken prior to the UK's vote to leave the European Union, and as a result don't reflect the hit to UK industry from Brexit. That impact won't be seen in ONS figures until September, when July's figures are released.
Earlier in July, Markit warned that the European manufacturing sector will take a huge hit as a result of the referendum, and similar, probably worse, consequences are likely in the UK.
"Given the uncertainty caused by the prospect of Brexit, it seems likely that business and consumer spending will be adversely affected across the euro area in the short term at least, pulling growth down in coming months," Markit's chief economist Chris Williamson said.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market