- Kate Davies, the Guardian
According to the Officials figures, Britain's industrial output dropped in August while the trade deficit widened.The Office for National Statistics announced that industrial production decreased 0.4% in August after a 0.1% rise in July. The data was smaller, than economists' predictions of another 0.1% increase. It is evident, that export was spurred by the weak pound, which touched new 31-year lows against the dollar on Friday due to the worries over the UK's prospects outside the EU. Nevertheless, industrial production is only a small part of the UK economy. Manufacturing production, in turn, went up less than expected in August, by a seasonally adjusted 0.2% in August, worse than expectations for a gain of 0.5% and following a drop of 0.9% a month. The UK manufacturers have reported an advance in both domestic and overseas demand, but imports are now more expensive as sterling depreciates.
In the meantime, several economists have pointed to a series of surveys showing rising business confidence, as evidence that Brexit has not hit the economy. But, while sentiment has bounced back, hard figures on actual output have been less encouraging.
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