- US: Advance Trade & Inventories (Feb)
- Sweden: Retail Trade, PPI, International Trade (Feb); Iceland: CPI (Mar)
- Turkey: International Reserves (Feb); Mauritius: Wage Rate Index, LFS (Q4); Saudi Arabia: Non-Oil Foreign Trade (Jan); Palestine: BOP (Q4); UAE: Fuel Prices (Apr); Israel: Construction Starts & Completions (Q4); South Africa: Construction Survey (Q1); Tanzania: Trade (Q4)
- Brazil: PPI (Feb)
- more updates...
Economy in Brief
Texas Factory Sector Activity Remains Strong
The Dallas Fed indicated in its Texas Manufacturing Outlook Survey that the General Business Activity Index eased during March...
EMU Money and Credit Growth Are Less Than Impressive Than Euro-PMIs
EMU nominal money supply growth is slightly higher over three months, but credit growth in the EMU is slower...
Durable Goods Orders Strengthened by Another Jump in Aircraft
New orders for durable goods rose 1.7% (5.0% y/y) during February...
Correction to Unemployment Insurance Weekly Claims
The Department of Labor has issued a correction to yesterday's annual revision to seasonally adjusted weekly unemployment claims...
EMU PMIs Are Off to the Races...Farewell Mediocrity?
The PMI rankings for the manufacturing and service sector PMIs in the EMU are suddenly off the chart...
U.S. New Home Sales Improve While Prices Decline
Sales of new single-family homes increased 6.1% (12.8% y/y) during February to 592,000 units (AR)...
by Robert Brusca January 12, 2016
U.K. manufacturing industrial production fell by 0.4% in November, falling for the second straight month. Manufacturing output is falling by 1.3% over 12 months and falling by 0.4% over six months. Over three months, output is still expanding at a 0.4% annualized rate.
In November, output fell for consumer nondurables, intermediate goods, and capital goods. Consumer durable goods output continued strong in November, rising by 2.4% month-to-month.
Sequential growth rates from 12-month to six-month to three-month show that consumer durable goods output is accelerating, the only sector to do so. Consumer nondurable goods output is rising over three months, but that is after contracting sharply over six months. Intermediate goods output is declining on all horizons as is capital goods output.
Industry results show declines in output for all the industries listed in the table. Mining and quarrying is showing an ongoing sharp and accelerating contraction. BP just announced today that it is going to be shedding even more workers as the global energy glut continues to take a toll on sector investment and operations. Sequential growth rates for other sectors continue to show a great deal of weakens albeit food and drink continue to expand in recent sequential periods.
In the quarter-to-date, with one month's data left to post, manufacturing output is rising at a 0.6% annualized rate. Output is falling in all sectors, except consumer nondurables output, which is boosting headline growth all on its own. Industry detail shows gains in all the listed industries in the quarter-to-date except for mining and quarrying.
The year-over-year drop in manufacturing output is the largest for manufacturing output in the U.K. since July 2013. Output now has four months of year-over-year declines in a row and a stretch of six months without an increase in manufacturing output. Output last fell for four months in a row in February-May of 2013. At that time, the declines were even stronger than they are now and the string of declines had gone on for much longer. Nonetheless, this episode is a significant weak patch for the U.K. manufacturing sector. It is coming at a time of weak global demand and ongoing downward pressure on extractive industries. Manufacturing worldwide is under pressure from excess capacity and weak demand.