This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2015/jan/09/uk-construction-industrial-production-oil-gas-factory-economic
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK construction output and industrial production decreased in November | |
| (about 1 hour later) | |
| A drop in construction and industrial production has added to evidence that the UK economy has lost momentum in recent months, but a bounceback in factory output has buoyed hopes for the manufacturing sector. | |
| Official figures released on Friday showed construction output and industrial production decreased in November as UK oil and gas output dropped sharply. But there was more upbeat news on manufacturing and exports that suggested UK companies could weather troubles in their biggest trading partner, the eurozone. | |
| Financial markets focused on the more downbeat indicators, taking them as the latest evidence the economy lost steam in the final months of 2014. The pound lost ground against the dollar as traders bet the Bank of England would be in no hurry to raise interest rates from their record low, given the mixed signals on the economy. | |
| “Disappointing official data are adding to survey evidence which indicate that the rate of UK economic growth slowed towards the end of last year,” said Chris Williamson, chief economist at data analysts Markit. | “Disappointing official data are adding to survey evidence which indicate that the rate of UK economic growth slowed towards the end of last year,” said Chris Williamson, chief economist at data analysts Markit. |
| “Looking at all of the official statistics and survey evidence currently available, the data collectively point to the economy growing 0.5% in the fourth quarter, down from 0.7% in the third quarter,” he added. | “Looking at all of the official statistics and survey evidence currently available, the data collectively point to the economy growing 0.5% in the fourth quarter, down from 0.7% in the third quarter,” he added. |
| The Office for National Statistics said manufacturing output rose by 0.7% in November, reversing October’s fall and beating economists’ expectations for growth of just 0.3%. On the year, output was up 2.7%. | |
| But the wider industrial sector, that also includes utilities, mining and oil and gas production, fell 0.1%. That drop was driven largely by a 5.5% fall in oil and gas output. The ONS said the weakness was partly down to maintenance work at two North Sea oil fields. | But the wider industrial sector, that also includes utilities, mining and oil and gas production, fell 0.1%. That drop was driven largely by a 5.5% fall in oil and gas output. The ONS said the weakness was partly down to maintenance work at two North Sea oil fields. |
| Separate figures from the construction sector showed output fell by 2.0% on the month in November, defying economists’ forecasts for growth. | Separate figures from the construction sector showed output fell by 2.0% on the month in November, defying economists’ forecasts for growth. |
| The news on trade was more encouraging, however, as the ONS reported the narrowest trade deficit since June 2013. | The news on trade was more encouraging, however, as the ONS reported the narrowest trade deficit since June 2013. |
| The manufacturing sector is still not back to its pre-crisis strength and exports have not grown as fast as the government would have hoped. Progress has been slow in the government’s push to rebalance the economy away from over-dependence on domestic demand, but some economists are predicting a strong 2015 for manufacturing. | |
| A drop in oil prices to their lowest level in more than five years has buoyed hopes for the sector. Maeve Johnston at the thinktank Capital Economics cautioned it was far from certain oil prices will remain so low, but the drop should help. “Provided that they do, the improvement in the trade deficit should not be a flash in the pan and the manufacturing sector should benefit greatly from lower costs. As things stand, then, 2015 should be a better year for manufacturers and exporters,” she said. | A drop in oil prices to their lowest level in more than five years has buoyed hopes for the sector. Maeve Johnston at the thinktank Capital Economics cautioned it was far from certain oil prices will remain so low, but the drop should help. “Provided that they do, the improvement in the trade deficit should not be a flash in the pan and the manufacturing sector should benefit greatly from lower costs. As things stand, then, 2015 should be a better year for manufacturers and exporters,” she said. |
| The trade numbers beat expectations as the ONS reported the goods trade gap narrowed by £1bn to £8.8bn in November, as exports edged down but imports fell faster. Economists had forecast a £9.4bn gap. The less erratic figures for three months to November showed exports grew by £2bn and imports shrank by £0.5bn. | |
| The details showed exporters continued to benefit from targeting markets beyond the deflation-hit eurozone. Exports to countries outside the European Union increased by £2.1bn, or 6.0%, in the three months to November from the previous three months. Exports to the EU decreased by £0.1bn, or 0.3%. At the same time, the UK recorded its largest ever deficit with Germany, reflecting a decrease in exports and a slight increase in imports. | |
| The trade gap for goods and services taken together fell to its lowest since June 2013, at £1.4bn in November. | The trade gap for goods and services taken together fell to its lowest since June 2013, at £1.4bn in November. |