"Recent data from the UK has seen an air of steady, if modest, improvement. The overall growth profile remains one of 'bouncing along the bottom' rather than accelerating progress"
- Jeremy Cook, chief economist at World First
The U.K. brief industrial revival came to a halt in April, as manufacturing production unexpectedly fell, the Office for National Statistics showed Tuesday. Hopes that the industry is gaining momentum should lead to better-balanced growth in the country were dented—output fell by 0.2%, after a 1.1% gain in the preceding month. On a yearly basis manufacturing production tumbled 0.5% in April, below analysts' expectations of a 0.4% drop. Among the main factors that were behind the monthly drop may be mentioned falls in transport equipment, wood and paper products, as well as in metal production.
The report also showed that output at Britain's factories, utilities and mines rose 0.1% from March, while the median forecast was for no change. Industrial production posted its record quarterly performance in the three months of 2013, adding to evidence the economy is on the path of sustainable recovery and further improvement is expected. Despite overall improvement growth still remains fragile, as lending by banks fell in the first quarter even despite an extension of the BoE's Funding for Lending Scheme. Nevertheless, growth is likely to pick up through 2013 and 2014, while the U.K. inflation is projected to decelerate.
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