Stagnation Charts #2: manufacturing output
The second in our occasional series of charts that illustrate economic stagnation comes from today’s release of the latest Index of Manufacturing:
The Index of Manufacturing accounts for slightly over two-thirds of the output of the production industries (the rest is accounted for by mining and quarrying, the utilities and energy industries) and there is an overall Index of Production, which shows much the same pattern:
It is instructive to compare the current stagnation with what has happened in previous recessions. Here’s the early 90s recession and today’s recession, with output measured as a percentage of the pre-recession high:
There is no sign of such a recovery in today’s figures: this is what stagnation looks like.