Manufacturing production in the U.K. expanded for the sixth consecutive month in October, making it the longest run in two decades. The data released by the Office for National Statistics on Friday showed manufacturing production climbed 0.1 percent in October. Same as expected.
“While manufacturing was relatively subdued overall in October despite record production of cars destined for export, the longer-term picture is one of strong growth,” ONS statistician Kate Davies said.
However, construction output plunged by 1.7 percent in the same month while the trade deficit widened as imports surged. This pushed the trade deficit to 1.4 billion pounds ($1.9 billion) in October as imports climbed 1.6 percent, outpacing a 1.1 percent gain in exports.
On yearly basis, manufacturing production rose by 3.9 percent in the month, also same as expected and represent the biggest jump since December 2016.
The U.K. economy remains resilient, even as experts predict a weaker economic outlook amid Brexit uncertainties, the economy continued to thrive and is forecast to grow at 0.4 percent in the final quarter of 2017 and 1.6 percent in 2018.
Meanwhile, the services sector that contributes about 80 percent of the economy slowed in November from 55.6 in October to 53.8 in November, another sign rising prices are hurting business activities in the sector.
Even though the construction sector expanded more than projected, the low contribution to the economy undermines its impact.
The pound remains fairly stable, trading at $1.3412 to a US dollar.
Leave A Comment