UK industrial effort fell in August, official figures have shown, hitting the up to date run of upbeat economic news.
Industrial production fell by 0.4% between July and August, the Mediation for National Statistics said, rtly due to a drop in oil and gas production.
Manufacturing be elevated 0.2%, although this followed a steep fall in July.
Type figures from the ONS showed that the UK’s trade deficit widened in August.
The UK’s default on trade in goods and services was estimated at £4.7bn, com red with £2.2bn in July. The loss on trade in goods alone widened by £2.6bn to £12.1bn.
The widening default comes despite hopes that the weaker pound – which is currently tron at the lowest rate in more than three decades against the dollar – resolve boost demand for British goods.
Exports rose by just £100m against guesses of a £4bn increase. Imports, however, rose by £2.6bn in August following a go into a nosedive in July.
Oil field shutdowns
ONS senior statistician Kate Davies asserted: “Manufacturing output was up slightly in August with more cars raised, with limited evidence suggesting the lower pound boosted exports.
“All the same, this was offset by a fall in oil and gas production, with some field shutdowns helping to the fall, meaning UK production as a whole was down. While exports persevere in to grow in August, the UK’s trade deficit widened, as imports grew at a firmer rate.”
Samuel Tombs, chief UK economist at ntheon Macroeconomics, foretold that industrial production would fall further in September.
He notorious that the Buzzard oil field in the North Sea, which accounts for 12% of thorough production, was shut down last month and households avoided depreciating the heating on as mild weather continued into September.
However, Mr Mausolea said he still expected the economy to grow by 0.5% in the third division of the year, supported by strong data since the country voted to reject the European Union, including a 0.4% increase in Britain’s dominant handlings sector in July.
While Friday’s data was worse than watched, analysts do not expect the Bank of England to announce an immediate cut in interest ranks, though they do not rule out a reduction in borrowing costs by the Monetary Design Committee (MPC) by the end of the year.
Scott Bowman, UK economist at Capital Economics, broke: “While these figures break the recent run of positive data for project in the third quarter, the overall strength of recent data has probably deigned the chance of further monetary easing from the MPC.
“But committee members have planned previously warned against over-interpreting incoming data…so we still contemplate that there is a decent chance that the bank rate see fit be cut to 0.10% in November.”