United Kingdom industrial and manufacturing data surprises on the upside

United Kingdom industrial and manufacturing data surprises on the upside

United Kingdom industrial and manufacturing data surprises on the upside

"Stronger global growth and the effect of the weaker pound seems to be finally showing through in the United Kingdom manufacturing numbers", said ING economist James Smith.

As per Use-based classification, the growth rates in September 2017 over September 2016 are 6.6 percent in rimary goods, 7.4 percent in capital goods, 1.9 percent in intermediate goods and 0.5 percent in infrastructure/ construction goods.

Industrial production rose 3.8 percent year-on-year in September, which was slower than the 4.1 percent growth economists had expected.

Industrial production measured in terms of the Index of Industrial Production (IIP) had grown by 4.5 per cent in August 2017 and 5 per cent in September 2016.

United Kingdom construction activity is worsening, data from the Office for National Statistics showed on Friday.

Mining production grew 7.9 percent and both manufacturing and electricity sectors registered 3.4 percent increase each. The growth was the fastest since February, when production increased 2.9%.

The ONS also reported that the UK's trade in goods deficit was £11.25bn in the month, better than the £12.8bn analysts had pencilled in, with exports rising faster than imports.

The general index for the month of September 2017 stands at 122.7, which is 3.8 percent higher as compared to the level in the month of September 2016.

Pharmaceutical output surged 12% in September after weakness over the summer, Insee's statistics showed. Economists had forecast a 0.9% fall. Industrial output grew 2.5 per cent in the first half of this fiscal compared to 5.8 per cent a year before. In the same month last year, it was 14 percent a year ago.

Consequently, the estimate for the third quarter sequential decline in construction output was revised down to 0.9% from 0.7%.

That was not enough to prevent a deterioration in Britain's trade performance in the third quarter, however, which looks likely to be a sizeable drag on economic growth.

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