From the TUC

Stagnation Charts #2: manufacturing output

09 Apr 2013, by in Economics

The second in our occasional series of charts that illustrate economic stagnation comes from today’s release of the latest Index of Manufacturing:

IoM 1The 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:

IoM 2It 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:

IoM 3By this point, manufacturing had completely recovered, surpassing the pre-recession high. There’s more similarity if we look at Mrs Thatcher’s recession:

IoM 4That recession hit manufacturing even harder (and we’re still feeling the effects today) but by this point a manufacturing recovery had been underway for more than two years.

There is no sign of such a recovery in today’s figures: this is what stagnation looks like.


2 Responses to Stagnation Charts #2: manufacturing output

  1. Peter Whipp
    Apr 10th 2013, 8:57 am

    I have an article on my website that explains exactly why we suffer “perfect stagnation”. I have demonstrated this solely through the simple rule of double-entry bookkeeping. I also include a possible way out of this trap. It is exactly the same trap that Karl Marx identified and warned us of some 150 years ago.

  2. Kelvin Kaszton
    Jun 4th 2013, 2:24 am

    Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation.:….^

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