Data released by the Office for National Statistics earlier on Wednesday showed that UK’s manufacturing output fell in July at the fastest pace in a year. Output in manufacturing fell 0.9 percent following a 0.2 percent drop in June, more than economists’ forecasts for a 0.4 percent fall.
It was the third successive month when manufacturing output declined. The volatile pharmaceutical sector represented the main drag on manufacturing, but many other sectors fell too.
UK’s overall industrial output unexpectedly rose 0.1 percent on the month after stagnating in June, helped by strong oil and gas production. Industrial output beat expectations for a 0.2 percent fall.
A closely watched survey by financial data company Markit had already suggested British manufacturing output plunged in July before staging one of its sharpest rebounds on record in August.
“The surveys therefore suggest that we should not get too concerned about what looks to have been a knee-jerk shock to the manufacturing economy in July, from which the sector has since rebounded. However, it’s also wrong to be complacent.” notes Chris Williamson, economist at Markit.