Insights into UK manufacturing
|↑ BRC/KPMG Retail Monitor
||Total sales values were up 3% in May compared with like for like sales one year a go. Retail sales were also up, by 0.8%. Much of the growth came from clothing and footwear; outdoor DIY; and leisure, all of which benefited from the sunny weather. Big-ticket furnishing and home wares items struggled in the face of some continued consumer uncertainty around job and income prospects.
|↓ UK Trade
||Figures from the ONS showed the trade deficit has widened from £7.259bn in March to £7.279bn in April, despite expectations that the deficit would narrow. Exports fell 0.6% and imports fell by 0.4% on the month.
|↔ MPC Announcement
||Once again interest rates remained at 0.5% and the size of the asset purchase programme was held at £200bn. The Bank of England is unlikely to tighten monetary policy in the coming months, though increasing expectations of inflation may become an issue.
|↓ Index of Production
||Total production and manufacturing production were both down by 0.4% on last month. However, year on year growth rates remain strong, with manufacturing output 3.4% higher than in April 2009.
|↑ BoE inflation attitudes survey
||Median expectations for the rate of inflation rose from 2.5% in the last quarter, to 3.3%. This will be a concern for the Bank of England, especially as 66% of respondents said interest rates should rise rather than allow prices to rise.
The week ahead
Tue 15th: Consumer Price Indices
Wed 16th: Labour Market Statistics
Thu 17th: Retail Sales
Fri 18th: Public Sector Finances
This is an informal blog about manufacturing and the economy written by EEF's policy and representation staff. While it is written from an EEF perspective, contributions should not be taken as formal statements of EEF policy, unless stated otherwise. Nor does it cover all the issues on which we campaign - you can check these out in more detail at our main site.
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