United Kingdom construction output falls more than expected

12 November, 2017, 02:58 | Author: Salvatore Jensen
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India's industrial output grew 3.8 per cent in September from a year earlier, the data from Central Statistics Office of the Ministry of Statistics and Programme Implementation showed today.

Year-on-year, construction output rose 1.1%, short of the 2.2% forecast and down from a revised 3.9% rise for August. The cumulative growth in these three sectors during April-September 2017 over the corresponding period of 2016 has been 3.9%, 1.9%, and 5.7% respectively.

September was the sixth consecutive rise in industrial production, which Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, pointed out was "a feat last achieved 23 years ago".

Some important items showing high positive growth during the current month over the same month in previous year include "separators including decanter centrifuge" (117.4%), "bodies of trucks, lorries and trailers" (94.5%), and steroids and hormonal preparations (including anti-fungal preparations).

The ONS also reported that the UK's trade in goods deficit was £11.25bn in the month, better than the £12.8bn analysts had pencilled in, with exports rising faster than imports.

However, construction output fell by 1.6 per cent in the month.

However, the total trade deficit widened by GBP 3 billion to GBP 9.5 billion in the three months to September, mainly due to an increase in imports of goods, mainly machinery, non-monetary gold and fuels.

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.

Both the monthly decline and the annual increase were the weakest figures since March a year ago.

"The flurry of activity data suggests that the industrial sector is helping to provide some offset to the consumer slowdown", said Ruth Gregory of Capital Economics.

"However, net trade probably dragged on GDP growth in Q3".


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