Durables Maintaining Growth Trends

Motor vehicles in particular have continued the growth trends in consumer goods in the first quarter of 2013 according to the ONS. The latest Consumer Trends statistical bulletin suggests that purchases of cars and household appliances has continued to gain in strength as spending on cars increased by 3.1% in terms of volume and on durables by 2.1%. Spending on major household appliances increased by 5.7%.

Household spending grew by 0.3% in the first quarter of this year due mainly to growth in spending on housing, water, gas elecytricity and other fuels. Households spent 0.3% more in volume terms well below the peak of Q4 2007 but 3.4% more than the recent low of Q2 2009. Current price spending was 17.6% higher than Q2 2009.

Household spending per head in current price terms increased by 0.8% to £3993, £340 more than in Q4 2007.

Industry Producer Prices Fall By 0.2% Across EU

The industrial producer prices index, that reflects price changes at the factory gates of Europe, fell by 0.2% in both zones (EA17 & EU27) during March as compared with February according to the latest statistical bulletin from Eurostat, the statistical office of the European Union. The annual comparison between March 2012 and March 2013 shows that industrial producer prices increased 0.7% in both zones.

The monthly comparison shows that energy prices fell by 0.6% in both zones and capital goods were stable while non-durable goods prices increased by 0.1% in both zones. Intermediate goods prices increased by 0.1% in the euro area and were unchanged in the EU27. Durables prices rose by 0.1% in the euro area but fell by 0.1% in the EU27.

In March 2013 compared with March 2012 total industry prices excluding energy rose by 1% in the euro area and 1.1% in the EU27. Durables gained 0.6% in both zones and intermediate goods prices gained 0.4% in both zones. Non-durables prices increased by 2.1% in the euro area and 2.3% in the EU27 and capital goods prices increased by 0.7% and 0.8% respectively.

Producer Prices Up By 0.2% In Euro Area

Industrial producer prices in the euro area increased by 0.2% in February 2013. In the EU27 the increase was 0.4% according to Eurostat. In January 2013 prices increased by 0.4% in both zones.

The monthly analysis shows prices in industry excluding the energy sector increased by 0.1% in both zones. Energy prices increased 0.4% and 1.3% respectively. Capital goods prices rose by 0.1% in the euro area and 0.2% in the EU27. Durables and non-durables both increased by 0.1% in both zones and intermediate goods remained stable.

The annual comparison shows that prices rose by 1.3% in both zones, excluding energy the increase was 1.2% in both zones. Energy prices rose by 1.6% and 1.4% respectively. Non-durables prices increased by 2.3% in the euro area and by 2.4% in the EU27 and in both zones capital goods increased by 0.8%, intermediate goods and durable goods prices increased by 0.7%.

Industrial Production Is Down 0.4% In Europe

Industrial production fell in both the euro area and the EU27 in January by 0.4% in both zones. In December they both grew.

Durable consumer goods production fell by 1.4% in the euro area and by 0.4% in the EU27 in January 2013 compared with December 2012. Non-durables invcreased by 0.9% and 1.3% respectively. Capital goods fell by 1.2% in both zones. Intermediate goods production grew by 0.1% in the euro area but fell by 0.1% in the EU27. Energy production decreased by 1% in the euro area and by 1.2% in the EU27.

The data available tells us that in Jnuary compared with December industrial production rose in nine countries and fell in nine. The highest increases were in Lithuania and Denmark and the largest decreases were in Finland and Luxembourg.

The annual comparison shows that production of durables fell by 5.5% in the euro area and 4.3% in the EU27. Production of non-durables increased by 3.1% and 2.2% respectively. Capital goods fell by 2.6% in both zones and energy production increased by 0.9% in the euro area and remained stable in the EU27. Intermediate goods production fell by 3.1% and 3.4% respectively.

The largest increases over the year were in Bulgaria and Lithuania and the decreases were in Sweden and Finland. There were increases in seven countries and decreases in eleven.

Industrial Production Growth In Europe

Industrial production grew in both zones in Europe in December compared with November 2012 according to a statistical bulletin from Eurostat. Production in the euro area increased by 0.7% and in the EU27 by 0.5% the release estimated. Production of non-durables grew by 2% in the euro area and 1.3% in the EU27 while durables grew by 2% and 0.4% respectively. Capital goods grew by 1.3% in the euro area and 1.2% in the EU27 but intermediate goods fell by 0.2% and 0.3% respectively. Energy production fell by 1.2% in the euro area and 0.4% in the EU27. The annual comparison estimated that industrial production decreased by 2.4% in the euro area and 2.3% in the EU27. The average production index fell by 2.4% in the euro area and by 2.1% in the EU27.

Industrial Prices Fall In December But Increase Over The Year

The industrial producer price index published by Eurostat fell by 0.2% in both the euro area and the EU27 in December compared with November 2012. The index increased 2.1% in the euro area and 1.9% in the EU27 using the annual comparison for December. The average industrial producer price index for the whole of 2012 compared with 2011 increased by 2.6% in the euro area and 2.7% in the EU27.

Total industry prices excluding energy were stable in both zones in December. Capital goods and intermediate goods remained stable. Durable consumer goods decreased by 0.1% in both zones and non-durable goods increased by 0.1% in both zones.

Prices fell in most Member States for which data was available except Belgium and Sweden (+1.2%) and Finland (+0.2%). Bulgaria, Denmark, Cyprus and Austria recorded the largest decreases over the month. Over the year, total industry prices, excluding energy, increased by 1.6% in both zones.

Factory Gate Prices Down In Europe In November

Factory gate prices in both the euro area and the EU27 fell by 0.2% in November 2012 compared with October 2012 according to a statistical bulletin from Eurostat. November 2012 compared with November 2011 shows an increase of 2.1% in the euro area and 1.9% in the EU27.

While annual inflation in producer prices in November 2012 increased by 1.5% in both the euro area and the EU27, the monthly analysis shows that in November total industry inflation, excluding energy, fell by 0.1% in the euro area and remained stable in the EU27. Energy sector prices fell by 0.7% in the euro area and by 1.1% in the EU27.

In both zones, intermediate goods decreased by 0.2% in November and capital goods increased by 0.1%. Durable consumer goods increased by 0.1% in the euro area and remained stable in the EU27 and non-durable consumer goods increased by 0.1% in the euro area and 0.2% in the EU27.

Energy prices increased by 4.1% over the year in the euro area and 2.9% in the EU27. Durable consumer goods increased by 1.1% in both zones while non-durable consumer goods increased by 2.3% in the euro area and 2.6% in the EU27. Intermediate goods increased by 1.4% in the euro area and 1.2% in the EU27 and capital goods increased by 1% in the euro area and 0.9% in the EU27.

Producer Prices Up In Europe

The industrial producer prices index by Eurostat increased by 0.2% in the euro area in November 2011 and by 0.3% in the EU27 compared with October. When compared with November 2010 the index went up by 5.3% in the euro area and by 6.3% in the EU27.

Total industry prices excluding energy fell by 0.1% in the euro area and remained stable in the EU27 in the monthly comparison. Energy prices increased by 0.9% and 0.1% respectively. Non-durable consumer goods increased by 0.3% in both areas and durables by 0.2%. Intermediate goods fell by 0.4% and 0.3% respectively and capital goods remained stable.

In the annual comparison total industry prices increased by 3% in the euro area and by 3.3% in the EU27. Energy prices increased by 12.3% and 13.8% respectively. Prices in the non-durable goods sector increased by 3.6% in the euro area and 4.2% in the EU27, intermediate goods by 3.5% and 3.8% respectively, durables by 2.6% in both zones and capital goods by 1.4% in the euro area and by 1.5% in the EU27.

Sweden reported the largest increases on the monthly comparison with 1.6%, followed by the UK, Ireland and Greece. Using the annual comparison, the greates increases were in the UK with 11.6% followed by Lithuania (10.8%) and Latvia (9.1%).

European Industries See Increase In New Orders

European industries experienced an increase in new orders in August 2011 compared with July and with August 2010. The euro area index rose by 1.9% on the month and 6.2% over the year. The EU27 increases were 0.4% over the month and 6.5% over the year.

New orders for capital goods increased 2.7% in the euro area between July and August and 1.1% in EU27, non-durables increased 1.2% and 0.5% respectively, durable consumer goods fell by 0.8% and 1.8%. Intermediate goods orders grew by 1.1% in both zones. Durable consumer goods orders also fell on the annual comparison, 3.1% in the euro area and 8.4% in EU27. Capital goods orders rose by 7.8% in the euro area and 8.2% in the EU27 and intermediate goods orders by 6.1% and 6.9% respectively.

Fall In Industrial Producer Prices In EU

The industrial producer prices index published by Eurostat fell by 0.2% in the euro area and by 0.3% in the EU27 in May compared with April 2011. When comparing May 2011 with May 2010 the IPP index rose by 6.2% in the euro area and by 78.1% in the EU27.

Energy prices fell by 1.1% in the euro area and 1.3% in EU27 over the month.Non-durables increased by 0.3% in both areas, durables increased by 0.1% in the euro area and remained stable in the EU27. Capital goods also remained stable while intermediate goods increased by 0.2% in the euro area and by 0.3% in the EU27.

Manufacturing Increases 5.8%

Production increased by 3.3% in October according to the index of production from the ONS. Manufacturing increased by 5.8%. The main contributors to the increase in the manufacturing index were an increase of 1.4% in machinery and equipment and 1.3% from basic metals and metal products. Capital goods increased by 8.4% and intermediate goods and energy by 1.2%. Mining and quarrying fell by 7.2%, oil and gas extraction alone by 8%. Electricity, gas and water supply increased by 0.7%. Consumer durables fell by 5.2% while non-durables increased by 4.3%.

Production Continues To Grow

The index of production for September was 3.8% higher than September 2009. The index for October 2010 rose by 3.3% compared with 2009. The index of manufacturing was 4.8% higher in September and 5.8% higher in October. Output increased in 10 of the 13 sub-sectors in both September and October and fell in 2 in September and 3 in October with the largest increases in machinery and equipment and basic metals and metal products in both months with increases of 21% and 12.6% respectively in September and 16.8% and 13.7% respectively in October.

In the euro area industrial production increased by 5.2% in September 2010 compared with September 2009 and 5.8% in the EU27. Capital goods grew by 7.5% in euro area and 8.7% in EU27, intermediates by 6.8% and 7.5% respectively, energy by 1.8% and 0.8%, non-durables by 1.6% and 2.5% respectively and durables by 0.2% in euro area and 2.2% in EU27.

Slight Increase In Industrial Producer Prices

The industrial producer price index went up by 0.1% in August in the euro area compared with July 2010 and was unchanged in the EU27. Compared with August 2009, industrial producer prices increased by 3.6% in the euro area and 3.9% in the EU27.

In both zones, over the month prices for intermediate goods increased by 0.4%, by 0.2% for non-durable consumer goods and 0.1% for durables. Capital goods decreased by 0.1% in the euro area and were unchanged in the EU27. Energy prices decreased by 0.4% and 0.7% respectively.

If August 2009 prices are compared with August 2010 prices total industry prices (excluding energy) increased by 2.2% in the euro area and 2.4% in the EU27. Energy prices increased by 7.5% in the euro area and 7.6% in the EU27. Durables increased by 1.1% and 1.4% respectively, non-durables by 0.4% and 0.7% respectively. Prices for intermediate goods rose by 4.7% in both zones. Capital goods increased by 0.5% in the euro area and 0.9% in the EU27.

Industrial PPI In May

The industrial PPI in the euro area went up in May 2010 compared to April by 0.3% and in the EU27 by 0.2%. Comparing May 2010 with May 2009 industrial PPI went up 3.1% in the euro area and 3.7% in the EU27.

In May compared with April 2010 total industry prices excluding energy went up by 0.4% in the euro area and 0.5% in the EU27. Intermediate goods increased by 0.8% in both zones. Consumer durables went up 0.2% in euro area and 0.3% in the EU27. Non-durable consumer goods (incl.fmcgs) went up by 0.1% in the euro area and 0.3% in the EU27. Capital goods went up 0.1% and 0.2%. Prices remained unchanged in the euro area but fell by 0.3% in the EU27. Hungary's index went up 3.4%

The industrial PPI (excl. energy) for May 2010 compared with May 2009 increased by 1.7% in the euro area and 1.8% in the EU27. Intermediate goods increased by 3.9% and 3.8% respectively. Consumer durables went up 0.7% in euro area and 1% in the EU27. Non-durable consumer goods (incl.fmcgs) fell by 0.1% in the euro area and 0.2% in the EU27. Capital goods went up 0.2% in the euro area and 0.5% in the EU27. Energy prices went up 7% in the euro area and 8.6% in the EU27. Malta's total index increased by 17%. There were decreases in Slovakia (-3.1%) and Latvia (-1.2%).

Industrial Prices Increase Across Europe

The euro area industrial producer price index rose by 0.9% in April 2010 compared with March. The EU27 rose by 1%. Prices increased by 0.6% in the euro area and by 0.8% in the EU27. Over the year to April 2010 industrial producer prices in the euro area went up by 2.8% and by 3.7% in he EU27.

Looking at the monthly statistics in sectors, total industry excluding energy increased by 0.5% in the euro area and 0.6% in the EU27. Energy prices rose by 1.9% and 1.7% respectively. Durables increased by 1% and 2%, non-durables by 0.1% and 0.2% respectively. Capital goods stayed to same in the euro area but increased by 0.2% in the EU27 and intermediate goods increased by 1.3% in both groups. Annual results show that total excluding energy increased by 1% and 1.1%. Energy prices rose by 7.7% and 10.2% respectively. Durables gained by 0.4% in the euro area and 0.7% in the EU27 and non-durables declined by 0.4% and 0.1% respectively. Capital goods fell by 0.1% in the euro area but rose by 0.1% in the EU27. Intermediate goods increased by 2.7% in the euro area and 2.6% in the EU27.

The were only two states in which decreases were seen, namely Latvia and Slovakia, both decreasing by 4.5%. Increases were recorded in all other states including Greece 9.1%, UK 8.5% and Malta on 16.7%.

Euro Industries Produce 1.3% Growth

Eurostat published figures show the euro area increased industrial production by 1.3% in March 2010 compared with February and the EU27 managed 1.2%. On an annual basis the euro area increased production by 6.9% in March 2010 and the EU27 by 6% compared with March 2009.

Looking at the main industrial groupings on the monthly basis, capital goods increased by 1.5% in the euro area and by 1.2% in EU27. Durable consumer goods increased by 0.6% in the euro area. Non-durable consumer goods increased by 1.2% in the euro area and by 1.1% in the EU27. Intermediate goods rose 0.5 and 0.8% respectively. Energy production fell by 0.5% and 0.2% respectively.

On annual comparisons intermediate goods rose 11.7% in the euro area and 10.6% in the EU27, capital goods rose by 4.5% and 4.9% respectively and non-durable consumer goods rose 4.6% and 3.2% with durable consumer goods rising by 2.2% and 3.8%. Energy increased production by 4.9% in the euro area and 2.9% in the EU27 over the year between March 2009 and March 2010.

The country with the biggest increase in production over the month according to the survey was Latvia with 9.9% then Portugal with 7.7%. The Czech Republic reported the smallest increase with 0.7%. The biggest decrease in production was in Ireland with a fall of 2.6%. Over the year the largest increase was in Estonia with 11.6% and the biggest decrease was in Greece with 4.5%. Latvia and Poland also had large increases in production over the year on 11.4% and 11.2%. Denmark's production fell by 1.9%. Norway, a member of EFTA and not the European Union, reported a decrease of 5.1%.

Increase In European Industrial PPI In March

The monthly industrial producer price index for the euro area went up 0.6% and the EU27 0.7% in March 2010 compared with February 2010. Price rises in the energy sector increased by 1.7% i the euro area and 1.6% in the EU27. Durable consumer goods also rose by 0.1% in the euro area and 0.3% in the EU27. Capital goods were unchanged in the euro area but increased by 0.2% in the EU27. Non-durables fell by 0.1% and remained stable respectively.

The index went up by 0.9% in the euro area and 1.7% in the EU27 in March 2010 compared with March 2009. The total industry index excluding energy 0.1% in the euro area and 0.3% in the EU27. The prices index in the energy sector rose by 2.8% and 5.12% respectively. Intermediate goods rose by 0.8% in both zones. Durables increased by 0.3% in the euro area and 0.5% in the EU27. Non-durables fell by 0.5% and 0.2% respectively. Capital goods fell by 0.5% in the euro area and 0.1% in the EU27.

Sales Continue To Grow On The High Street

Growth in High Street sales has continued into the third consecutive month and it is expected to continue according to the latest CBI Distributive Trades Survey for April.

The moving average of sales volumes remained positive and growth is expected again in May. Although there wasn't much change in the volume of orders placed on suppliers it is also expected to grow in May. Stock levels are more than adequate to cover demand.

Wholesalers saw sales volumes grow rapidly and expect the same in May. Industrial materials wholesalers also had strong sales growth except for agricultural machinery and electrical installation materials who reported a difficult April. Durables wholesalers sales stabilised after a difficult March. Motor trades sales fell for the fourth consecutive month and they expect another fall next month. Parts and accessories sales grew for the third month in a row.

Production Down In February

The index of production fell by 0.1% in February 2010. The index of manufacturing increased by 1.4%, the mining and quarrying index fell by 7.6% and the energy supply industries index 2.6% according to the latest statistics from the ONS.

The production index increased in 8 of the 13 manufacturing sub-sectors and fell in 5 sub-sectors. The transport equipment sub-sector increased the most with an increase of 16.9% over the year within which the manufacture of motor vehicles increased 51.6% and the manufacture of aircraft and spacecraft went up 12%. Food, drink and tobacco increased by 2.8% within which meat and meat products increased by 16.3% and the processing and preservation of fish, fruit and vegetables by 16.5%. The largest contributor to the year on year increase in the manufacturing index of 1.4% was transport equipment with 1.8%. The food, drink and tobacco industries increased by 0.4%.

The mining and quarrying index fell by 7.6% in February 2010 compared with February 2009. Oil and gas extraction decreased by 8.9% and coal by 16.9%. Over the year there was an 8.1% decrease in oil and gas extraction that contributed to the 7.6% year on year decrease.

Electricity supply output decreased by 7.5% contributing to the overall 2.6% fall in output in electricity, gas and water supply. Consumer durables and capital goods reported increases of 0.6% and 6.2% respectively in February.

Sales Growth On The High Street Expected To Continue

Retailers have seen growth for the second month running according to the CBI Distributive Trades Survey for March. The trend is expected to continue through Easter. Sales volumes were reported to be higher than the same time last year as expected. The volume of orders also grew for the second month in a row. Stock levels are more than adequate to meet demand. Very strong sales were reported by grocers, durable household goods, clothing, furniture and carpet retailers. Hardware, china and DIY reported falling sales for the second month. The wholesale sector also saw a fall in sales against expectations. There was strong sales growth in the food and drink sector but agricultural machinery sales and builders merchants had a difficult month. Motor traders also had another bad month due to a drop in vehicle sales while parts and accessories sales grew for a second month.