3/22/2018

*UK FACTORIES IN LOW GEAR*


UK factories start 2018 in low gear, and construction stumbles.

LONDON : British industry kicked off  2018 in low gear and a downturn in construction deepened,  according official data that suggested Britain's economy remains on a slow path ahead of Brexit.

Britain went from being the fastest Group of Seven economy to the weakest last year as the Brexit  vote weighed on household spending and investment in companies.

Manufacture output which has been a bright spot thanks to the strong global economy, inched up only 0.1 percent month-on-month in January after a 0.3 percent in December, the Office for National Statistics said.

That was slightly weaker than the consensus in a Reuters poll of economists that pointed to 0.2 percent rise.

Nonetheless, January marked the ninth month in a row of manufacturing growth in monthly terms -the longest such run since records began 50 years ago.

But the overall picture was one of slowing momentum.

Over the three months to January, manufacturing output rose 0.9 percent, the weakest pace since  mid-2017.

Construction output plunged 3.4 percent month-on-month in January after a 1.6 rise in December, the biggest drop since June 2012 and worse than any forecast in the Reuters poll.

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