Industrial production output exceeds even the strongest estimates - EY ITEM Club comments

10 February 2017

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  • Industry and construction delivered an encouraging performance in December…
  • …albeit not strong enough to shift the Q4 GDP estimate
  • But data offers hope that previously struggling sectors might be able to mitigate the likely consumer slowdown

Martin Beck, senior economic advisor to the EY ITEM Club, comments:

“Outturn in both industry and construction exceeded even the strongest estimates. Although on their own these figures are not enough to move the dial on the GDP growth front, they provide a solid platform for Q1. It looks likely that these previously struggling sectors will be able to step up and help to mitigate the effects of the impending consumer slowdown

“Within the production sector, manufacturing output surged by 2.1% month-on-month. More than a third of this increase came from the volatile pharmaceuticals sub-sector, but the underlying picture does appear to be moving into line with the stronger story told by the business survey results.”