Belfast Telegraph

Industrial sector 'not as badly hit by Jubilee'

By Peter Cripps

Manufacturers were not as badly hit by the disruption caused by the Queen's Diamond Jubilee celebrations as previously feared, new figures revealed.

The Office for National Statistics (ONS) reported a 2.9% decline compared to the previous month, after production was impacted by an extra bank holiday in June, but this was not as bad as the 4.5% expected in the City.

The better-than-expected figures fuelled hopes that the UK's double-dip recession may not be quite as deep as previously thought, after the ONS's preliminary estimate for second quarter GDP showed a shock 0.7% decline. But economists warned the manufacturing sector still appears to be contracting.

Samuel Tombs, UK economist at Capital Economics, said: "June's industrial figures suggest that the drop in GDP in the second quarter is likely to be revised to a slightly smaller fall. But the figures did not change the overall picture of a struggling sector."

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