Manufacturing rebound hints at recovery in the second quarter
MANUFACTURING output rebounded in March, official figures showed yesterday, raising hopes that the economy may be emerging from recession.
However, the month’s warm weather hit overall industrial production as energy consumption fell, and Nationwide data out today shows consumer confidence remains subdued, underlining the sluggish nature of any recovery.
Factory output rose 0.9 per cent in the month to March, according to the Office for National Statistics (ONS), reversing its earlier fall to leave output unchanged on the quarter. Over the year output fell 0.9 per cent.
However, the ONS’ index of production, including energy and mining and quarrying fell 0.3 per cent on the month and 2.6 per cent on the year, led by an annual 10.6 per cent fall in mining and a 17.6 per cent drop in gas production.
And Nationwide’s consumer confidence index fell from 53 in March to 45 in April, 30 points below its long term average.
“The index has consistently remained well below its long-run average, signaling ongoing caution on the part of UK consumers,” warned Nationwide economist Robert Gardner. “It is not surprising that confidence remains fragile, with labour market conditions still weak,” he added.