A recent rise in manufacturing output failed to override a bad year for Britain’s factories, according to official figures on Friday.
The Office for National Statistics said industrial production fell 1.9% in the year to the end of July dragged down by lacklustre output of machinery and equipment.
A decline in the production of steel and other metals dragged the manufacturing sector down by 0.7%, adding to falls in North Sea oil output that have hit the broader figures for several years.
Manufacturing grew in June and July, but this spurt of activity, largely down to a turnaround in machinery and steel production, was not enough to offset falls dating back to last year when the government’s austerity policies were hitting consumer confidence and the euro crisis was at its height.
The recent rise in production has been welcomed by George Osborne as a sign that his economic policies are bearing fruit. But he is likely to be dismayed by trade figures from the ONS showing that the UK’s recent growth has pulled in a record volume of imports and more than doubled the trade deficit to £3.1bn.
Imports rose to £104.2bn in the three months to July, a 3.1% increase, while exports to the EU remained flat and the trade in goods to countries outside the bloc fell sharply.
via The Guardian
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.