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| UK industrial output falls back | UK industrial output falls back |
| (30 minutes later) | |
| Industrial production in the UK fell unexpectedly in January, as the cold weather dented firms' output, official data has shown. | |
| Output fell by 0.4% compared with December, the Office for National Statistics (ONS) said. Analysts had expected a rise of 0.3%. | Output fell by 0.4% compared with December, the Office for National Statistics (ONS) said. Analysts had expected a rise of 0.3%. |
| Strong December figures and the icy weather were to blame for the biggest monthly drop since August. | |
| Manufacturing output, fell 0.9%, adding to fears for the recovery. | |
| However, year-on-year, manufacturing output recorded its first rise since March 2008, up 0.2%. | However, year-on-year, manufacturing output recorded its first rise since March 2008, up 0.2%. |
| While most manufacturing industries saw declines, there were small rises in output from the machinery and equipment and food, drink and tobacco industries. | |
| The ONS said that as well as the harsh weather being a factor, some firms had reported they had rushed to complete orders in December before January's rise in value added tax. | |
| It added that industrial output in the three months to January climbed 1% compared with the previous three months. Many argue this gives a truer picture of economic conditions. | |
| 'Rogue number' | |
| The manufacturing group, the EEF, said that the output figures were "surprising given the raft of other survey data since the beginning of the year which has been more upbeat". | |
| "The underlying trend is one of growth and the continued recovery in the world economy should underpin this in the months to come," said the EEF's chief economist, Lee Hopley. | |
| Meanwhile Investec economist Philip Shaw said that while it was " impossible to blame everything on the weather", it did seem to be having an effect. | |
| "The only comforting feature with manufacturing is that all the surveys show the output trend to be positive, which gives us confidence that January's official reading is a bit of a rogue number," he said. | |
| Figures released on Tuesday showed that the UK's trade gap with the rest of the world had widened unexpectedly in January to its largest since August 2008. | Figures released on Tuesday showed that the UK's trade gap with the rest of the world had widened unexpectedly in January to its largest since August 2008. |
| Exports saw their sharpest drop in more than three years, and the UK's trade gap in goods and services widened to £3.8bn, compared with £2.6bn in December. | Exports saw their sharpest drop in more than three years, and the UK's trade gap in goods and services widened to £3.8bn, compared with £2.6bn in December. |