Industrial production in the U.K. fell by the most in one month in nearly two years due to a confluence of unusual factors, but still stoked concerns about the strength of the economic recovery, according to Financial Times. On Friday, the Office for National Statistics reported that industrial production was down 1.7% in April from the previous month, drastically reversing the 0.2% gain posted in March. The drop surprised economists who had been expecting no change in output. Additionally, manufacturing production slowed by 1.5% in April, which was the biggest drop since 2008.
The ONS cited specific factors in the slowdown, pointing to bank holidays for the Royal Wedding and late Easter as well as the disaster in Japan for “some or all” of the decline in output. Howard Archer of IHS Global Insight agreed, “This was undoubtedly heavily influenced by production being lost to the extra day’s public holiday,” and said that supply chain disruptions from the earthquake and tsunami also held back manufacturing, adds The Daily Telegraph. Nonetheless, Archer continued to say, “The data heightens concern that the hitherto buoyant manufacturing sector is now faltering appreciably.”
Click here to read the story on manufacturing from Financial Times.
Click here for coverage of economists’ reactions from The Daily Telegraph.