Insights into UK manufacturing
|↓ Consumer Price Indices
||The CPI inflation rate fell slightly to 3.4%. RPI annual inflation was 5.3%. The largest downwards pressures on both indices came from food and non-alcoholic drinks; and transport. Conversely, housing and household services exerted a significant upwards pressure on this month’s inflation figures.
|↓ Labour Market Statistics
||The claimant count measure of unemployment – which records the number of people claiming Job Seekers’ Allowance – was down by 30,900 to 1.48 million, the fourth consecutive monthly fall, but there are still over 670,000 more claimants than at the pre-recession low in May 2008. The ILO measure of unemployment rose by 23,000 to 2.47 million in the three months to April. The three-month unemployment rate fell slightly to 7.9% from last month’s figure of 8.0%.
|↑ EEF Pay trends
||The three-month average settlement was 1.5% in May, up again from 1.4% in April and the highest reading since March 2009. The proportion of pay deals between 0.0% and 2.0% rose to 38.3% in the three months to May, up from 37.7%. In the three months to May, pay freezes accounted for only 30.6% of settlements, down from 33.3% in April and 46.1% in March. This marked the sixth consecutive decline in the proportion of pay freezes.
|↑ Retail sales
||Month on month retail sales volumes rose by 0.5% in May compared with revised figures for April showing a fall of 0.1% last month. Food sales and household goods sales were behind the rise in spending.
|↓ Public sector finances
||Estimates for the public sector budget deficit in May 2010 were £14.1bn, compared with £15.7bn in May 2009. Public sector net debt this month was estimated to be £903bn (or 62.2% of GDP) compared with £774bn (55.4% of GDP) last year.
The week ahead
Wed 21st: MPC Minutes
Fri 23rd: GDP (Q2, prelim); Index of Services
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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