Industrial production dynamics are declining

The CSO data shows that industrial production in April fell by 6.4 per cent year-on-year. This is a fall well below the forecast (-3.5 per cent).

In April, there were significant year-on-year declines in the production of energy-related goods, down 14.5 per cent, consumer durables, down 13.5 per cent, supply goods, down 10.8 per cent, and non-durable consumer goods, down 5.3 per cent. By contrast, the production of capital goods increased, up 7.2 per cent.

As ING economists point out, "the deep decline in production is the result of weakness in the automotive and food industries and the normalisation of inventories".

Article originally appeared in @money.co.uk:22 May 2023. We invite you to read the full version:" Industrial production dynamics are falling. "The picture looks weak".