Industrial Output Falls By 1.5%

Industrial output decreased by 1.5% between August 2012 and 2013 and reflects a 0.2% fall in manufacturing, 10.2% in mining and quarrying and 3.5% in electricity, gas, steam and air conditioning according to the ONS.

A large upward contribution came from transport equipment manufacturing with an increase of 12.5% mainly from the manufacture of motor vehicles, trailers and semi-trailers.

The monthly comparison shows a decrease of 1.1% between July and August 2013. All four sectors fell with the biggest falls in manufacturing at 1.2%.

European INOs Increase 11.1% On 2010

Industrial new orders increased by 11.1% in June 2011 compared with 2010 in the euro area and 8.5% in the EU27 according to a statistical bulletin from Eurostat, the EU statistics office (excluding volatile sectors the index rose by 7.9% in the euro area and 6.3% in the EU27).

In June compared with May however the index fell by 0.7% in the euro area and 0.3%. The volatile sectors such as ships, railway and aerospace equipment can skew the index considerably and when they are excluded new orders fell by 3% in the euro area and 2.2% in the EU27.

European IPP Increase

The index of producer prices of all products sold on domestic markets of the various countries of the EU (excluding imports) rose by 0.9% in the euro area and 1% in the EU27 in April 2011 compared with March 2011. April 2011 compared with April 2010 shows that the annual increase was 6.7% in the euro area and 7.8% in the EU27.

The monthly changes included an increase in energy prices of 2% in the uero area and 2.2% in the EU27, an increase of 0.4% in both areas in total industry and 0.6% in intermediate goods, 0.2% in durables and 0.1% in capital goods. Non-durable consumer goods rose by 0.5% in the euro area and 0.4% in the EU27. The highest increases at the national level were in Latvia at 4.6% only Sweden reported a decrease (-0.5%) and Malta remained stable.

Total industry prices (excluding energy) increased 4.4% on the annual basis in the euro area and 4.6% in the EU27. Energy prices increased by 13.3% in the euro area and 15.4% in the EU27. Intermediate goods prices increased by 7.3% in both zones. Non-durables rose by 3.4% in the euro area and 3.9% in the EU27. Durables rose by 2% and 1.9% and capital goods by 1.3% and 1.4% respectively. The largest increase nationally was in the UK with an increase in the total index of 13.1%. The smallest was in Malta with 0.9%.

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.

5.3% Increase In European Manufacturing Orders

New manufacturing orders increased by 5.3% in August 2010 after a 1.8% fall in July. If the more volatile heavy transport sector including ships, railways and aerospace are left out the increase was still 4.1%. It was the same in the EU27. Total new industrial orders increased by 3.6% and excluding heavy transport equipment the increase was 3.3%. Capital goods were the most significant driver in both areas.

Agricultural Inputs Prices Rise Again

The index of prices received by producers for all agricultural products returned to its May level of 137.5 from the June level of 137.9 in July 2010. Crop products increased from 138.6 to 139.4 but animals and animal products fell from 137.9 to 137.5. Within crop products, the cereals index increased from 142.5 to 144.6 and industrial crops from 136.5 to 157.9. Fresh vegetables fell to 127.9 from 131.1. These prices exclude subsidies.

Prices received for cereals fell again in 2009 from 207.1 in 2008 to 150.1 and industrial crops from 232.9 to 183.4 respectively. Farm gate prices for fresh vegetables also fell in 2009 from 117.5 to 113.9. The index for the total for all products fell from 143.3 to 135.8 in 2009.

The index of prices paid by producers for agricultural inputs shows that the prices paid for seed fell from 101.5 to 99.6 in Jul 2009, fertilisers and soil improvers fell to 244.3 from 245.7. Plant protection products remained unchanged at 99.9. The animal feedingstuffs index increased from 156.1 to 159.9. The overall index for agricultural inputs increased for the fifth consecutive month from 137.2 to 139.7 in July 2010.

The annual series shows that the overall index for prices paid by producers for agricultural inputs fell from 139.6 in 2008 to 132.9 in 2009.

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.

High Street Building Up To Christmas

The CBI report retailers are enjoying an early build up to Christmas with the third successive month of growth in sales. The Distributive Trades survey suggests sales have grown over last year and could grow still more before the end of the month. Sales for the time of year are below seasonal norms and described as poor by some retailers.

Stock levels remain almost unchanged from November but the volume of orders rose again but at a slower rate than expected. Orders are expected to flatten in the New Year, as are sales.

The highest rates of growth were in the grocery, durable household goods, footwear and leather and furniture and carpets. Booksellers and stationers saw a reversal of their recent growth and there was a fall in sales at the chemists.

Industrial materials reported an change for the better as fourteen months of falling sales ended with a flat month. Clothing, textiles and footwear wholesalers saw their best sales growth since 2004.

There was a second month of growth for motor traders who expect that to contiue into the New Year due to the scrappage scheme. Sales for the month were said to be above average.

Slight Growth In High Street Sales

There was a slight improvement in high street sales in the year to October according to the latest CBI distributive trades’ survey results. Businesses also expect volumes to improve further in November.

The improved results in volumes were greater than expected and the best figures since December 2007. A small percentage of retailers reported poor sales for the time of year, which was an improvement on last month, and they expect sales to remain below seasonal norms in November.

Stocks are more than adequate to meet demand but more orders are expected in November than were placed in October.

The sectors that have performed particularly well include durable household goods, furniture and carpets, booksellers and stationers. Clothing, footwear and leather retailers and grocers also reported sales growth. Sales fell for chemists and the hardware, china and DIY retailers.

The wholesale sector's sales volumes were flat for the second month running but better than the expected fall. Food and drink wholesalers reported strong sales growth, but industrial materials and builders merchants had a difficult month. The motor trades saw trade volumes fall and many expect sales to fall again in November. Vehicle sales, rather than parts and accessories were the main factor in the poor sales report.

Difficult Summer For Shops

The CBI tell us that shops are still having a bad time in the High Street as retail falls again for the third month in a row. Their forecast for August is no better. The results are mitigated by saying that the fall is no greater than the rises we saw in May and June and a lot better than the falls between July 2008 and March 2009. That's better than expected by a lot of people.

Sales volumes are down but not as much as expected. Stocks are adequate to meet demand even though they are below average for the thrid succesive month. Orders fell again and the outlook for all of these figures is more of the same in August.

When looking at the individual sectors, grocers are seeing strong growth, as are footwear and leather with its best result since August 2007. Hardware, china & DIY, and furniture & carpets are reported falls while household durables fall is slower than last year. Wholesalers sales volumes fell in the year to July. In particular it was a difficult month for industrial materials and builders' merchants wholesalers. Food and drink wholesalers however reported another month of strong growth.

Not Much Change In Retail Trades

Retailers reported yet another fall in retail sales volumes for the first two weeks of June compared with last year in the latest CBI Distributive Trades Survey results. The decline was more or less what was expected, more than last month but not as much as the previous month and nothing like the falls that have been witnessed during the last year. Retailers also reported that they expect sales to fall for another month in July. Stocks are more than adequate to meet demand so retailers have been slowly cutting back on orders with their suppliers. Sectors to see some growth include grocers and furniture and carpets. Durables, hardware, china, DIY and clothing showed sharp declines. The fall in the wholesale sector was sharper than the previous two months. If the fall extends into July it will be the thirteenth month in a row of falling sales. The hardest hit were the industrial and builders merchants wholesalers. Agricultural machinery and food and drink wholesalers saw no change on the year. The scrappage scheme may have had something to do with the motor sectors best sales figures for over a year.