In a surprise development, UK factory production fell in May for the first time in three months, indicating the economy is still in the grips of the recession. Separately, the UK economy shrank 0.4 per cent in the second quarter of this year, economic researchers said today.
The National Institute of Economic and Social Research said revisions to official data last month suggested the recession had not reached its trough in March after all.
"However, on the basis of the monthly profile we estimate that the UK economy is now stagnating rather than continuing to contract at a sharp pace," NIESR said.
NIESR said last month that the recession had ended in March and that growth returned in April.
However, official data published last week showed GDP fell a sharper-than-estimated 2.4 percent in the first three months of 2009, the biggest fall in 50 years.
Manufacturing output dropped 0.5 per cent from April, when it stagnated, the Office for National Statistics said today in London.
In the three months to May 2009, the seasonally adjusted chained volume index for the output of the production industries decreased by 1.8 per cent compared with the previous three months and was 12.3 per cent lower than the same three month period a year earlier.
Between April and May, output of the manufacturing industries fell by 0.5 per cent. The most significant decreases in output were 2.0 per cent in the paper, printing and publishing industries and 1.7 per cent in the machinery and equipment industries. The most significant increase in output was 3.7 per cent in the other manufacturing industries.
Manufacturing output in the latest three months fell by 1.2 per cent compared with the previous three months. The most significant falls were 4.6 per cent in the basic metals and metal products industries, 5.0 per cent in the machinery and equipment industries and 3.2 per cent in the transport equipment industries. The most significant rises were 2.2 per cent in the chemical and man-made fibres industries, 1.4 per cent in the paper, printing and publishing industries and 1.1 per cent in the food, drink and tobacco industries.
Mining & Quarrying
In the latest three months, mining and quarrying output fell by 2.7 per cent compared with the previous three months and was 8.7 per cent lower than the same period a year ago. Between April and May, mining and quarrying output decreased by 2.1 per cent with a fall in oil and gas production.
Electricity, gas & water supply
Output of the electricity, gas and water supply industries in the latest three months fell by 5.5 per cent compared with the previous three months. Between April and May, the output of the energy supply industries rose by 1.0 per cent. In the latest three months, output in this sector was 10.5 per cent lower compared with the same period a year ago.
