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| UK industrial output and construction data miss forecasts | UK industrial output and construction data miss forecasts |
| (35 minutes later) | |
| New economic data has cast doubt over the strength of the UK's economic recovery, prompting warnings against an early rise in interest rates. | |
| The Office for National Statistics (ONS) said that manufacturing activity and broader industrial output were both flat in November, from October. | |
| Separate figures showed construction activity fell 0.4%, the sharpest monthly decline since June 2012. | |
| BNP Paribas economist David Tinsley called the data "unambiguously poor". | BNP Paribas economist David Tinsley called the data "unambiguously poor". |
| Samuel Tombs, UK economist at Capital Economics, added: "November's weak industrial production figures signal that GDP growth in the fourth quarter is unlikely to be quite as strong as the business surveys have indicated." | |
| Also on Friday, the ONS revised down the growth figures for manufacturing and wider production for October. | Also on Friday, the ONS revised down the growth figures for manufacturing and wider production for October. |
| Sterling falls | Sterling falls |
| On an annual basis all three sector's showed growth, with manufacturing up 2.8% in November from a year earlier, the strongest performance since May 2011. Construction output, a stronger performer for much of 2013, was up 2.2% on the year. | |
| Mr Tinsley said that despite the data, the UK's economic fundamentals were "broadly encouraging" and the new figures should keep "the lid on over-exuberant (interest) rate hike expectations". | |
| The news hit sterling, which fell against the dollar and the euro, as traders worried about whether the data was a sign that economic recovery was not a strong as hoped. | The news hit sterling, which fell against the dollar and the euro, as traders worried about whether the data was a sign that economic recovery was not a strong as hoped. |
| Recent industry and consumer surveys have pointed to growing confidence about economic prospects, prompting debate about when, not if, the Bank of England will raise rates. | Recent industry and consumer surveys have pointed to growing confidence about economic prospects, prompting debate about when, not if, the Bank of England will raise rates. |
| But David Kern, chief economist at the British Chambers of Commerce, warned against a rise any time soon. "Although longer-term comparisons show solid annual growth, these monthly figures are disappointing," he said. | But David Kern, chief economist at the British Chambers of Commerce, warned against a rise any time soon. "Although longer-term comparisons show solid annual growth, these monthly figures are disappointing," he said. |
| "It is a timely reminder that the recovery is not yet secure, and should also dampen the clamour for an early rise in interest rates. The government must continue to implement measures to boost growth, to ensure that the UK economy is on firmer ground before any such step is introduced." | "It is a timely reminder that the recovery is not yet secure, and should also dampen the clamour for an early rise in interest rates. The government must continue to implement measures to boost growth, to ensure that the UK economy is on firmer ground before any such step is introduced." |