Hooray, the "mighty" British industry is growing again and leading the world to a new industrial era. This might have sounded normal about 2-3 centuries ago, when Britain ruled the waves and led the world technologically. Today the industrial sector only makes up for a small portion of the UK economy and the UK makes up for only a small portion of the global GDP, 2.36% exactly.
Anyway, the UK industrial production and manufacturing numbers were released a while ago and guess the great pace of growth in the industrial production. Yes, that´s right, it grew by a staggering … 0.1%. The manufacturing production on the other hand, shrank by 0.9%. That´s the third declining month in a row, which puts this sector in recession for this quarter. We´ll have to wait for next quarter´s figures to see if the recession in this sector becomes official.
The industrial production did grow by 0.1%, but this sector is not that important nowadays, since it doesn´t really show the health of the UK economy post Brexit. The oil and gas production which is part of the industrial production is defined by global trends rather than the domestic economy. Besides that, the households are still going to use fresh water services, sewage services, waste management services, electricity etc, so Brexit and the shape of the economy can hardly affect these things.
The manufacturing production on the other hand, is more related to the domestic and global economy. It has been shrinking in the last 3 months, 2 of which were before the Brexit referendum. But, the worrying thing is that even though the goods manufactured in Britain are about 20% cheaper now, the demand for them and consequently the production has decreased. That´s the most worrying sign in this report. Meanwhile, the GBP is heading lower.