This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23237654
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK manufacturing output in surprise fall | UK manufacturing output in surprise fall |
| (35 minutes later) | |
| UK manufacturing unexpectedly fell in May, contracting at its fastest pace since January, official figures show. | UK manufacturing unexpectedly fell in May, contracting at its fastest pace since January, official figures show. |
| The 0.8% drop was much weaker than analysts' forecasts, with most having predicted a rise. The wider measure of industrial output was unchanged. | |
| The figures run counter to data released recently that has indicated the economy picking up. | |
| Last week, a manufacturing sector survey recorded the best growth for nearly two years in June. | Last week, a manufacturing sector survey recorded the best growth for nearly two years in June. |
| Other surveys pointed to continuing strength in the services sector, and a rise in confidence across UK businesses. | |
| There was more good news for the UK housing market on Tuesday, with surveyors are expecting house prices to keep rising. Last week, the Halifax said that house prices were rising at their fastest annual rate for nearly three years. | |
| 'Weak' momentum | |
| Commenting on the latest Office for National Statistics (ONS) figures, Lee Hopley. of the EEF manufacturers' organisation, said: "Output gains in electrical equipment and transport sectors weren't enough to offset bigger contractions in pharmaceuticals and metals. | |
| "We did, however, see some growth in exports and signs of stabilisation in Europe providing a slight lift for overseas sales. | |
| "While the ONS data suggest industry's contribution to growth in the second quarter is likely to be limited, there are signs that confidence is returning and growth should start to resume as we move into the second half of the year." | "While the ONS data suggest industry's contribution to growth in the second quarter is likely to be limited, there are signs that confidence is returning and growth should start to resume as we move into the second half of the year." |
| David Tinsley from BNP Paribas said: "Overall, this is not a strong set of data. | |
| "The momentum behind manufacturing remains disappointingly weak, which is troubling, given the economy needs to do more to rebalance towards sectors where it can hope to find demand for its exports." | "The momentum behind manufacturing remains disappointingly weak, which is troubling, given the economy needs to do more to rebalance towards sectors where it can hope to find demand for its exports." |
| The ONS also said the UK's trade deficit grew to £8.491bn in May from £8.430bn in April. | |
| "The overall trade deficit is slightly up, but the April figure was revised down, which paints a mixed picture. Worryingly, the volume of exports in goods fell while imports increased," said David Kern, chief economist at the British Chambers of Commerce. | |
| "Overall, our trade deficit is still too large, and we are not making fast enough progress in rebalancing our economy towards net exports," he added. |