Figures for the UK manufacturing sector are disappointing after industrial production declined in August, coming in at -1.1 per cent - the biggest fall in almost a year - missing expectations that it would be up 0.4 per cent after a 0.1 per cent increase in July (revised from flat).
Manufacturing production also fell 1.2 per cent in August. Again, it was expected at 0.4 per cent after a 0.2 per cent increase in July.
Year-on-year, industrial production was down 1.5 per cent for August, after expectations of -0.6 per cent. July-July figures were down 1.1 per cent, revised up from -1.6 per cent.
Manufcaturing production was expected up 1.0 per cent, but came in down 0.2 per cent, marking only a marginal improvement on July's year-on-year -0.3 per cent, revised up from -0.7 per cent.
Samuel Tombs, UK economist at Capital Economics, comments:
August’s weak industrial production and trade figures signal that GDP growth in the third quarter might not be quite as strong as the business surveys have indicated. Admittedly, these falls follow on from bigger rises across June and July, so industrial production is still on track to make a small positive contribution to GDP growth in third quarter.
Chart shows the volatility of monthly ONS industrial production data. i.e. don't get too worried about a drop in Aug pic.twitter.com/1R5gEqft4F— Chris Williamson (@WilliamsonChris) October 9, 2013