Car Industry Shutdown ... Causes Shock to Output ...
Manufacturing output fell in April. Latest data suggests activity fell by almost 1% year on year. The car industry shutdown grabbed the headlines. A 7% drop in investment and capital goods the major reason. It is a continuing story of lost exports of investment goods, as world activity slows.
The trade in goods deficit was £12 billion in the month. A reversion to the mean, following the stock build augmented £47 billion deficit in the first quarter. It remains a huge deficit and a significant drain on growth.
Service sector growth in the month was 1.7%. Construction activity was up by 2.4%. The job market continues to reflect growth in the economy. The unemployment rate in April was unchanged at 3.8%. There were 1.3 million unemployed and almost 840,000 vacancies.
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