§ 43. Mr. David Young
asked the Chancellor of the Exchequer what evidence there is that industrial output is being restrained by lack of demand.
§ Mr. Brittan
In the last three years output has fallen, but demand has generally held up well. In the latest two quarters for which data exist, the volume of total final expenditure was only 1 per cent. lower than in the first half of 1979 but industrial production was down by 11 per cent. This is indicative of the failure of much of our industry to compete effectively in home and world markets, though there are recent encouraging indications of an improvement in industrial performance.