European Economic Recovery? UK Industrial Production Unexpectedly Drops

Again we see another example of the difference between what people say and what people actually do. 

Earlier, UK’s economy has been touted as emerging “strongly from the deep recession of recent years” , due to a big jump on the purchasing managers index (PMI) which rose from 54.8 in July to 57.2 August – “its highest level in two and a half years” (the Guardian).

The reality turns out different, contra consensus expectations UK’s industrial production fell "most in almost a year"

From Bloomberg:

U.K. industrial production unexpectedly fell in August by the most in almost a year, casting doubt on the strength of the third-quarter recovery.

Industrial output dropped 1.1 percent from July, when it gained 0.1 percent, the Office for National Statistics said today in London. The median forecast of 30 economists in a Bloomberg News survey was for an increase of 0.4 percent. Factories cut output by 1.2 percent, with pharmaceuticals contributing most to the decline.

Whether in the Eurozone or Japan, the establishment’s spin machine eventually faces wrenching reality