U.K. factory output up, trade gap widened

A slew of mixed economic data from the U.K. was published on Friday, with activity at manufacturing sector expanded, albeit less than expected, trade deficit rose to the largest since October, while home prices advanced for the seventh straight month in August. Britain's manufacturing production increased for the second month in a row in July, reinforcing a view the economy is accelerating, with factory output adding 0.2% from June, when it expanded 2%. The output in the broaden industrial sector, 80% of which represents manufacturing sector, remained flat on a monthly basis, while on an annual basis it declined 1.6%. The major drag on the performance of sector came from oil and gas extraction, where production plummeted 17.2%. In addition to this report, the ONS said that the slowdown in emerging market has forced British trade deficit to its largest level in almost one year. The gap stood at 3.1 billion pounds, from a deficit of 1.3 billion a month earlier, mostly due to a 15.8% drop in shipment to non-European countries. The positive data came from the housing market, where home values gained 0.4% to an average 170,231 in August, while from a year ago they soared 6.2%. With low interest rate, government schemes and a strengthening economic recovery, prices will probably continue climbing higher through the rest of the year. The latest figures are reflecting the domestic economy is building up the steam, while the recovery can be dampened by the weak performance of global economy.