-Simon Wells, an economist with HSBC
Industrial production in Britain barely grew in February, as a rise in manufacturing activity was outweighed by a decline in oil and gas. Industrial output climbed 0.1% as energy output fell 3.8%, according to the Office for National Statistics, below a 0.3% increase expected by analysts. The data suggest the industrial sector faltered in the beginning of the year, with output in the three months through February inching up just 0.2%. Meanwhile, the UK manufacturing production rose 0.4% in the reported month, with gains in seven of the 13 manufacturing sub-sectors. The largest contributor was the manufacture of transport equipment, which climbed 1.6% on the month, whereas the area with the biggest drop was the manufacture of basic pharmaceutical products. In addition to that, British building activity continued to slow in February, with construction output unexpectedly falling 0.9% in the reported month. Measured on an annual basis, building industry contracted 1.3%, marking the second consecutive annual decline in construction industry growth.
The recent data suggests Britain's economic growth probably slowed in early 2015, potentially adding to challenges for Prime Minister David Cameron to persuade voters to grant his party power to run the economy.
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