- NIESR
Manufacturing production in the UK, which accounts for 10.1% of the British economy, unexpectedly declined for the first time in five months in October, while industrial output also fell, according to the Office for National Statistics. Manufacturing production dropped 0.7% after increasing 0.6% in September and against analysts' expectations for a 0.2% gain. Measured on an annual basis, manufacturing output rose 1.7% in October, considerably below market consensus of a 3.2% increase. The report also showed industrial production fell 0.1% on month in October, while year-on-year industrial output rose 1.1%. Despite the disappointing results revealed, a survey conducted by the Confederation of British Industries last month showed the manufacturing sector's recovery continued in October but was weighed by weak exports.
A separate report showed retail sales on like-for-like basis rose 0.9% in November from the previous year. Total sales grew 2.2%, showing the best performance in three months, the British Retail Consortium said. The UK economy is projected to grow 0.7% in the three months to November, unchanged from the previous two readings in September and October, according to the latest GDP estimate of the National Institute of Economic and Social Research. The official data showed the British economy slowed to 0.7% in the September quarter, down from 0.9% in the preceding three-month period.
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