Politics 10 July 2012 Boom in the gloom for capital goods Amidst stagnation, there's one ray of hope Print HTML Up on the month and still down on the year. Today’s UK production figures (from the ONS) can be taken either way. Stagnation after a brief and half-hearted recovery really does seem to be the conclusion as manufacturing output has seen three month on month rises in the last six months, and three falls. Total production output has been weaker than manufacturing (two-thirds of the total) for months due to the dismal performance from the North Sea but the annual decline in May is, at least, the least negative since September last year. UK Index of Production from Timetric The striking trend in the last couple of years has been the rise in the output of capital goods. The reason for this strength is not entirely clear other than to make the relative comparison, namely to point to the well-known weaknesses in consumer demand and mining (mainly North Sea oil) output. Until one of those two sectors picks up, there is little chance of a real recovery. UK Index of Production from Timetric Manufatcuring output is divided into a number of components. The chart below shows the strongest and weakest of the 13 sub-sectors in the recovery phase, post-2008. Output of transport, electrical and other equipment has grown strongly while wood, computing and basic pharmaceuticals have experienced no recovery at all. Originally posted at Timetric.com › The fate of Lords reform now rests in Labour's hands An oil rig. Energy is one of the flagging sectors. Photograph: Getty Images Simon is the vice president (product) at Timetric Subscribe More Related articles Leader: On capitalism and insecurity No economy is an island: why Britain's finances now depend on Europe Cabinet audit: what does the appointment of Philip Hammond as Chancellor mean for policy?