Tuesday, 12 June 2012
Manufacturing drop entrenches recession
The cold weather / warm weather which keep people indoors or entices them into pub gardens and shops is as absurd as the conversation on Eurozone crisis benefits (low gilt yields and FDI) and costs (lower demand in some export markets) or the extra bank holiday debate.
Spending on fuel in cold weather is not only a poor economic activity measure because the alternative is degrading people quality of life to a level not envisaged even by this government, but also because it means more pollution. Through inefficient house fragmentation (ie stubbornly "terraced" as opposed to shared buildings), and their careless insulation, the irony is a good 30% of this "industrial production" goes out of the window into thin air. This is almost criminal from a regulator's point of view.
Goods manufacturing is a better gauge of how productive and competitive this economy is. Moaning about the "recession on Britain's doorsteps" as if everything in house is just fine is not only inept, it is insulting.
This economy is on the wrong course. Period. Don't try to massage the data to show a rosy picture, don't try to blame every quarter's poor performance on something else.
I wonder what other statistics does this government need to do something or let others take the helm.