§ 14. Sir C. Osborneasked the Chancellor of the Exchequer, in view of the fact that the index of industrial production for April on the seasonal adjusted basis is 114, compared with 115 for March, and 115 for April last year, when he now expects industrial output to expand; what reasons there are for expecting such expansion; and if he will make a statement.
§ Mr. Selwyn LloydSmall month-to-month movements in this index are not significant. In the three months February to April the index was two points up on the three preceding months. I expect this trend to continue. Exports, public consumption, and public investment have been rising, and I expect that they will go on doing so. Personal consumption should also rise with a change in the trend of food prices, and the relaxation of hire-purchase restrictions will give an additional stimulus. There is also the fact that there has been a sharp fall in stock-building since the end of last year—a process which I do not believe will continue.