Fraser Nelson

Don’t hold your breath for a manufacturing-based recovery

Don't hold your breath for a manufacturing-based recovery
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Hmmm. So much for manufacturing-based recovery that is supposed to come as a result of the crash of sterling. Manufacturing output was off 2.9% in January, the eleventh consecutive drop. The fact that we’re a lot cheaper to Americans and Europeans doesn’t seem to help much – partly because any sane foreign client will demand price reductions, mindful of the currency drop. Result: a precipitous fall in the ONS Manufacturing Index of Production (below): 

 
  

And in case you were wondering then yes, it’s the worst of any post-war recession as the below graph from Citi shows. A Major-style bust? If only.

Written byFraser Nelson

Fraser Nelson is the editor of The Spectator. He is also a columnist with The Daily Telegraph, a member of the advisory board of the Centre for Social Justice and the Centre for Policy Studies.

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