|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Wednesday 12th of August 2009
June 10, 2009

UK industrial output in surprise rise


by Kay Murchie
”UK

Figures released today by the Office for National Statistics (ONS) have triggered hopes of an economic recovery after UK industrial output showed a surprise increase in April - the first month-on-month rise for 14 months.

According to the ONS, industrial output rose 0.3% from March - analysts had forecast a decline of 0.1%.

Furthermore, the ONS reported that manufacturing output also rose 0.2% in April compared with March - which was also unexpected.

The figures are fuelling hopes that a recovery may be on the cards since the latest Chartered Institute of Purchasing and Supply’s survey revealed that the services sector rose for the first time in a year.

The sector is closely monitored and boosts hopes that the worst of the recession is over.

In the meantime, there was further good news yesterday as the Department of Communities and Local Government (DCLG) reported that UK house prices climbed by 1.1% in April.

Furthermore, the Royal Institution of Chartered Surveyors announced this week that new buyer enquiries rose for the seventh consecutive month in May, while completed sales were at their highest since August 2008.

Returning to today‘s figures, Colin Ellis, European economist at Daiwa Securities, described today‘s figures as “particularly encouraging”.

Howard Archer, chief UK and European economist at IHS Global Insight, said today’s figures added to the “recent stream of improved data … and reinforce belief the economy will see only modest GDP contraction at worst in the second quarter”.

Today’s figures will also boost the Chancellor, Alistair Darling, who announced in his Budget that the economy will begin to recover by the end of the year.

However, his forecast was snubbed by many commentators, in particular the International Monetary Fund who forecast that Britain would be stuck in the recession for another year, dragged down by the slump in the housing market and the slowdown in consumer spending.

Discuss this in the Finance Markets forums

Story link: UK industrial output in surprise rise


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

Tags: , , , , , , , , , , ,

 

Previous: « Insurers upbeat for year ahead
Next: Setanta facing administration as BSkyB talks collapse »

Visited 353 times, 3 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment