Saturday, November 12, 2011

Economic Illiteracy - Media Edition

Great news !

"British retail sales grew more than expected in September after a surprise increase in sales of laptops and video games, the Office for National Statistics said on Thursday."
By strange chance, Laban bought a new laptop in September - and his youngest son also got a new games console as a reward for better-than-expected GCSE results, after a paternal promise the previous autumn which at the time seemed unlikely to ever need redeeming. Fair play though - he got the grades. Perhaps that made the sales difference ...

How good that must have been for British laptop and video console manufacturers !

Terrible news !

"In a blow to the government's aspirations for exports to lead a recovery, the trade gap – the difference between imports and exports – widened to almost £10bn in September, prompting warnings that already lacklustre economic growth for the third quarter will be downgraded."

Perhaps one day someone will put two and two together and recognise that, for as long as we continue not to make anything, strong retail sales are part of the problem, not part of a solution.


Anonymous said...

Well the other assumption is that if people can afford to buy things then the economy must be generating wealth, and therefore recoverying.

But really, the total amount of debt should be deducted from GDP, then we'd get a more accurate figure.
And then these debt fueled 'booms' would be seen for what they are more quickly.

Infact debt plus interest should be deducted from GPD figures, which would show debt for the disadvantage that it really is.

John F said...

"We dont make anything..."

At peak financial sector accounted for 8% GDP; manufacturing at same point 14%
UK manufacturing turnover 2006 c. £450 bn/yr
Earned 53% of export earnings 2009 down from 60% 2005 and 80% 2003.
UK manufacturing output exceeds that of France by value.
In 2005 manufactured exports as % merchandise exports 77%; lower than other G7 except Canada due to N. Sea oil; but of these the "high tech" sectors (aerospace, computers, special electronics, pharmaceuticals, scientific instruments, electrical machinery) were 28% of manufactures exports (compare US 32%, Japan 22%, France 20%; Germany 17% - German figures skewed down due to large exports in autos, specialty metals etc; but N.B. UK figures exclude batch production high grade machinery & parts)

indices by constant (2005 priced) values:

Index of all production (includes mining, food processing etc) :
2005 = 100
2000 = 104.2
1990 = 91.4
1980 = 76.7
1970 = 70.6
1960 = 53
1950 = 39.7

Index of manufacturing:
2009 = 88.5
2005 = 100
2000 = 102
1990 = 93.5
1980 = 77.4
1970 = 79.4
1960 = 59.3
1950 = 43.6
(N.B. does NOT include North Sea Oil output)

UK car production:
1950 523,000
1960 1,353,000
1970 1,641,000
1980 924,000
1990 1,296,000
2000 1,641,000
2007 1,535,000

UK steel production (millions of tonnes):
1950 16
1960 24
1970 28
1980 11
1990 17
2000 15
2008 13

I grant these figures are out of date, by years, but solid economic stats. usually are, and AFAIA the relative proportions have not shifted much. I could hunt around for more recent updates onlne if you are really interesed

I'm not daft enough to say that UK manufacturing does not have problems but a post industrial wasteland we aint.

cheap oakley glasses said...

Thanks for your information.
wholesale cheap

oakley sunglasses

cheap oakley


oakley sunglasses


discount Oakley