UK manufacturing growth fails to soothe slowdown fears

The British manufacturing sector’s fastest annual growth in more than 15 years failed to soothe fears of a looming slowdown today.

The industry grew at an annual rate of 4.3% during May – the highest since December 1994 – after expanding by 0.3% over the month, according to the Office for National Statistics (ONS).

But the performance was flattered by comparisons with the collapse in output a year ago when the UK was still stuck in recession and experts say the sector is far from out of the woods.

Survey data for June has showed signs of a cooling bounceback among manufacturers as well as nerves in the UK’s powerhouse services sector following British Chancellor George Osborne’s savage Budget squeeze.

“With forward-looking survey indicators of activity in both the industrial and service sectors recently softening – and the effects of the enormous fiscal squeeze yet to kick in – the second quarter may turn out to be as good as it gets,” Capital Economics’ chief European economist Jonathan Loynes warned.

More in this Section

Oil price falls as virus fears hit hardOil price falls as virus fears hit hard

Harcourt posts profit of €23m and reduces debtHarcourt posts profit of €23m and reduces debt

Cork Chamber wants a Minister for CitiesCork Chamber wants a Minister for Cities

Budget hotel operator EasyHotel to open Dublin property next yearBudget hotel operator EasyHotel to open Dublin property next year


Lifestyle

Food news with Joe McNameeThe Menu: Upcoming food highlights

THE health properties of tea have long been advertised. “It maketh the body active and lusty” a 1660 promotion suggested. However, before you dunk your teabag into a mug of steaming water, spare a thought for the environment. Some have polypropylene to help to seal them and it doesn’t decompose.Storm in a teacup: Top 8 loose-leaf teas

Bestselling author Isabel Allende talks to Rowena Walsh about life, grief, and why it’s never too late to fall in loveIsabel Allende: It's never too late to fall in love

Cliffs of Moher Retreat owner Michelle Moroney has written a book on finding self-worth and stepping back from our 24/7 lives. She talks to Marjorie Brennan about the need to unwindMichelle Moroney highlights the need to take stock of our lives

More From The Irish Examiner