Thursday, May 11, 2017

Data on industrial production indicate that output growth in this sector slowed in March to 1.4% year on year. This follows sharp declines in each of the previous two months, and on a monthly basis industrial output is now some 1.9% lower than its peak in December of last year. Since there was also a mini-peak in the series in April 2016, it would not be surprising if the year-on-year series were to turn negative next month.

The series, along with predictions for the coming two years from my neural network forecaster, appears in the graph below. As ever, forecasts should be treated with caution, not least given the present political uncertainties.