Industrial output falls while high street sales slump

News Update from Chartered Financial Management (UK) Ltd: Figures from the ONS show UK industrial output fell 0.4% in June following a drop in oil, gas and mining production The ONS blamed part of the fall on maintenance in a major oil field. However, output from the manufacturing sector increased by 0.2% in June, following a 0.6% drop in May. UK manufacturers have struggled this year due to weak demand from Europe and a high pound. Despite the return to growth in June, the chief economist at the BCC, David Kern, described the manufacturing sector's overall performance as "mediocre". "Year-on-year growth is below 1% and the level of manufacturing output is still almost 5% below its pre-recession peak in the first quarter of 2008." Separately, BDO’s High Street Sales Tracker recorded a 1.1% drop in year-on-year sales for July, with speculation over interest rate rises blamed for generating uncertainty amongst consumers.

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