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The UK economy was given a fresh boost today after industrial production rose for the first time in more than a year.
Official figures showed industrial output was 0.3% higher in April than in March — the first increase since February last year.
Gordon Brown pounced on the news and said it showed that actions taken to tackle the deepest recession in decades are working.
A No 10 spokesman said: “There are signs that the Government's actions to support the economy through this difficult downturn are having an effect but this remains a very difficult global economic situation and there are absolutely no grounds for complacency.”
Rather than a rise in April, the City had forecast a fall of 0.1% after the 0.3% decline of a month earlier. But output was still down 12.3% on April last year.
Manufacturing output was also 0.2% higher in April than in March but down 12.7% on April last year.
“It's encouraging that we're seeing some improvement,” said Ross Walker of Royal Bank of Scotland. “I'm still cautious about reading too much into this, but at least there's a sense we're through the worst.”
The pound rose against the dollar and the euro having been hammered for much of the last week amid political unrest in Westminster. It was up 1.47 cents to $1.6417 and 0.35 cents to €1.1655.
The weak pound has boosted exports to Europe but that was not enough to stop the UK's trade gap with the rest of the world widening in April.
Official figures today showed the deficit increased from £6.5 billion to £7 billion over the month. Exports to European Union countries rose 4% against a 1% rise in imports. But imports from non-EU countries rose 4.5% while exports fell 3%.
Kate Barker, a member of the Bank of England's monetary policy committee, said it was not clear whether the pick-up in the economy will last and added: “We think [interest] rates could stay low for quite some time. The really important question is whether there's a pick up in the economy and if people can sustain that so it continues on to autumn.”
The Bank has cut interest rates to a record low of 0.5% and is pumping an extra £125 billion into the economy to pull Britain out of recession.
The economy shrank by 1.9% in the first quarter of the year but economists now believe the contraction will be far less in the current second quarter.
According to today's figures, the most significant rise in output in April was a 3.2% increase in the transport and equipment industries. There was also 2.3% growth in chemicals and man-made fibres but falls in metal and other manufacturing industries of 2.2% and 3.8% respectively.
Jonathan Loynes of Capital Economics said: “Today's numbers provide further evidence that the economy's rate of contraction has slowed markedly in the second quarter and that a return to positive growth may not be far off.”
Reader views (27)
Perhaps this is good news for all of the people that have already lost their jobs and are going to lose them as companies continue to cut costs. If this is a “recovery”, then if they are lucky they may not have lost their homes and everything else by the time they are able to get another job.
- Xtremely Worried, Ostrich Costas, Luton
Strange that Gormless wants to take credit for a miniscule upturn but claims that anything negative is due to the global recession. Could it be that this slight upturn is due to Global forces at work and nothing to do with Gormless?
- Den, London
This is for all who said me and Mr darling was wroung,the economy will grow this year house prices last week up by 2.9%.Brown has saved UKPLC,long live the eco King Brown.No Growth in no other country, we are the first to came out of recession, not flash just Gordon.
- Eco Man, london
Keith Price, you're usually good for a laugh. But sometimes I wonder whether you also deserve a trip to the Priory (you know, your mate Gordon can vouch for it!) UK leading the US ... pleeeeeeeease ! [PS, and I'm not a huge fan of the US either]
- Marianne, SW France/London
"best industry figures in a year" - You are surely deluded. They are better than february but are still the tenth worst out of twelve and massively down on last year.
- Bill G, Slough
Keith Price and Val Daniels - You have never run a business have you? We wind stocks down, then check demand levels to see if we have done too little or too much. This 0.2% is a post check adjustment not the start of a great big turnaround.
- Eddie Bowler, Bromley, UK
Peter French, Orihuela Costa Spain - Please pop over to see Val Daniels of Mijas Coastas and put her straight. She is deluding again.
- Dave Davies, Basingstoke
2.2 on the dole, 2.6 on the sick, no money set aside for public sector pensions, we are bankrupt.
Well done, Crash and Lord Mandy. Still not to worry; all the NuLab troughers have their property portfolios paid for by the taxpayer doing very nicely, thank you.
- Undercover Elephant, Dole Farm, Crays Hill, Essex
Some triumph. Since Mr Brown sold this nation into overspend over the last three years and his 10 years as a effective Chancelleor was smoke and mirrors coupled with a now borrowing deficit that makes the eyes water calling it a triumph is like awarding Pinnochio a prize for nose growing.
Peter
Spain
- Peter French, Orihuela Costa Spain
Of course. Crash Gordon has preoccupied himself with internal problems, his party's expenses fraud issues and trying to change electoral laws. Since he has stayed out of economics and messing things up on the banks sterling has risen again over the last few months. But of course long term he has ruined most of the UK economy and the taxation keeps on going up. He should go and that would really revive the markets. If he starts fiddling again with the finances we will all lose...
- Georgie, Islington, London
Is there anybody out there that actually believe's this rubbish anymore?,-if McBroon and Lady Mandelson believe in fairy tales,perhaps they should write childrens books.This country is bankrupt and will be in debt for 30yrs,- probably longer,-thats the awful reality.
- Jacob, Canterbury Kent
The moment there is even the slightest hint of improvement will be the time for the Gormless one to be sacked...
- Hugh E Torrance, London England
As Mr Blair was reported to say something in this vain - "The economy runs itself not because of what Mr Brown does, but by itself!" So, that does not say much about Gordon Brown's competencies. The UK economy will start to grow whenever the time is ripe, and not because of Mr Brown being the 'Great Helmsman'. After all, his 10 years stewardship as Chancellor, in my opnion, is nothing much to boast about.
Mr Brown and his Cabinet Colleagues will continue what they are good at - moving the Deck Chairs around the deck of 'Steamship New Labour Titanic' to accomodate the New Faces for the 'Last Concert Party'. Whatever 'Promises' Brown says that he will 'Listen' etc, he won't. This respite he has will just be like giving the keys of the Sweetie Shop back to the Kleptomaniacafter he ahs been caught.
"Nothing Changes, then Nothing Will Change!" Mr Brown and his colleagues are far to stubborn to change at this late time in the day.
"Goodbye Broone, Goodbye Broone, Good Bye to all the Loons, Goodbye Broone!'
- Uncle Vanya, East Anglia Area UK
Nobby, do you take sleeping medication? If so, can I have some as I'd like to put myself to sleep until after the next General Election.
- Steven Dale, London, England
Output is over 12% down on last year;the trade gap widened by £500 million; the economy is expected to contract again in this quarter, albit more slowly. All this indicates is that the recession may be bottoming out. but we still have to pay for Gordon's spending. Let those who think the bail out of banks was worth it explain that to their children and grandchildren who will be footing the bill long after Brown is consigned to history.
- James Elliott, Eastbourne UK
Brown triumphs on best production figures in a year"
Well done PM ! Good to see theat Gordon Brown is keeping his promises to get the UK out of the worldwide economic recession. No wonder than that President Obama and the USA are following his lead
- Keith Price, Luton, England
Poor old Val she she cannot wait can she? Val the true figure is 0.2%. Simple language thats one fifth of one percent. Now you claim to be on the ball would you jump up and down for joy if you had a .2% increase in your business if you had poured billions (taxpayers) money into it. No! We are losing jobs by the thousands and it is reckoned we will have between 3 and 4 million unemployed by 2010. I too want UKPLC to turn round but you are far too premature in congratulating Gordon Brown and expecting us to be out of the woods this year. Far worse is yet to come. We have to find billions to fill the black hole caused by massive overspending by the government. Put your champagne back in the fridge.
- B Gare, Norfolk Gorleston
How exciting for us!
- Brian Hughes, Llandudno. North Wales
These figures are absolutely nothing to do with the Government. They would have happened anyway--due to diligance, hard work, constant crisis management, restructuring and overhead cost and stock control
- William Grierson, Kimpton-UK
Val Daniels,SPAIN?
You don't even live here so how would you possibly know apart from logging on to this site every day?
- Steve, London
These figures are in spite of Gordon Brown not because of his incompetent dithering uselessness.
- Brian Faulkner, Bridgwater, UK
And I daresay the Chancellor's predictions of a return to growth in the 3rd quarter will also prove to be right. The government is doing a good job, now let them get on with it.
- Val Daniels, Mijas Costa, Spain
What industry, what production? We don't make anything in this country anymore, we just keep importing more and more and selling off our companies to anyone as long as they aren't English. There's nothing self sufficient about our country whatsoever. We could be held to ransom by any country in the world!
- Sue, Orpington, Kent
That is good news; with another 0.7% we will some be running full blast with a whole 1% of production; ok it’s still nowhere near the 13%, of last year, but it makes our bail out of banks look worth while and the next couple of decades of higher taxes were well spent.
Well done Gordon; you canny Scot with a deep sporran.
- Mickyinlondon, london
This is not Brown's triumph. And this isn't growth either - it's a slowing of a contraction. That's like saying petrol is cheaper because it hasn't gone up in price as much this month as it did last month. Please at least strive for accuracy even if you don't achieve it.
Anyway, all this will be academic when Brown's next raft of taxes bite.
- Clovis, London
Before you all heap praise on this gormless idiot remember a recovery was bound to come at some time.
No wonder he pounced on this news.He's got to justify his existence somehow.
- Steve, London
That's it - the recession is officially over. Brown's donning of the red underpants has saved the day.
My fuel bills have dropped; my shopping bill is smaller; it costs less to fuel my car; I've got a pay rise; my job is safe.
And then I woke up.
- Nobby Clark, Perth, Scotland
