The UK economy grew 0.6 per cent in the October-to-December period. Taking the year as a whole, the economy grew 2 per cent, 10 per cent slower than the growth of 2.2 per cent achieved in 2015. Good news, I hear you say. But, as with many things in life, the details tell a more complicated story.
Many sources, such as the BBC, contend that this better-than-expected growth is because of increased consumer spending during the last quarter of the year. However, it is also worth pointing out that UK car production achieved a 17-year high in 2016, according to the latest figures published by SMMT. This comes at the same time that the motor manufacturer’s association reported new car registrations of just under 2.7 million for the year – itself another record. This being the case, it is worth taking a closet look at the figures and the messages give us in the inextricably linked tyre sector as well as the economy as a whole.
According to the IHS Markit/CIPS Purchasing Managers’ Index (PMI), UK manufacturing fell to its lowest level since February 2013 in July. At 48.2 in July, the metric was down from 52.4 in June. This is only the second time since early 2013 that the PMI has fell to a sub-50.0 level. The move was reportedly the steepest decline since October 2012.
Josh Hardie, deputy director-general of the CBI, has responded to the Northern Powerhouse Independent Economic Review, saying: “The outcome of the EU Referendum means that pressing ahead with powering economic growth across the North of England is now more important than ever.
Global markets and tyre markets interact with each other. With economics and indeed the tyre market being more “global” than ever, events in one market are bound to have a greater impact on other markets than ever. And with Europe having experienced its share of political and especially economic instability in the last decade, while […]