UK Industrial Production Growth Fastest Thus Far This Year

  • UK Industrial Production Growth Fastest Thus Far This Year

UK Industrial Production Growth Fastest Thus Far This Year

According to the use-based classification, growth rates in September 2017 came in at 6.6 per cent for primary goods, 7.4 per cent for capital goods, 1.9 per cent for intermediate goods and 0.5 per cent for infrastructure/construction goods compared to the previous year.

The ONS reported that industrial production rose by 0.7 per cent in the month, more than double the 0.3 per cent financial analysts had expected.

United Kingdom industrial output grew at its fastest rate seen this year in September according to the Office for National Statistics, in data which is likely to make the Bank of England feel more comfortable about its decision to raise interest rates for the first time in a decade last week.

Mining production grew 7.9 percent and both manufacturing and electricity sectors registered 3.4 percent increase each.

Separately, the ONS said Britain's goods trade deficit narrowed by much more than expected to 11.253 billion pounds in September from 12.350 billion, helped by a rise in exports.

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.

Consumer durables output contracted -4.8 percent in September, against 1.6 percent in the month before.

Samuel Tombs, an economist with Pantheon Macroeconomics, said the narrowing of the deficit in September nearly entirely reflected an improvement in trade in erratic items. As well as the sharp fall in September from August, output was only up 1.1 per cent from a year earlier.

Economists polled by The Wall Street Journal had forecast a 0.5% expansion.

Separate data from the ONS showed that construction output decreased 1.6% month-on-month in September, amid declines in both fix and maintenance as well as all new work.

Consequently, the estimate for the third quarter sequential decline in construction output was revised down to 0.9% from 0.7%. "So we remain optimistic that net trade will provide more support to growth in the quarters ahead".