‘While industrial production and manufacturing output has proved resilient into the end of 2016, its sustainability over 2017 is in question’. – Fabrice Montagné and Andrzej Szczepaniak, Barclays
British manufacturing production rose at a stronger than expected pace in December, despite the country’s decision to leave the European Union. Official data released by the Office for National Statistics on Friday showed manufacturing output grew 2.1% in the final month of 2016, following November’s upwardly revised gain of 1.4% and surpassing analysts’ expectations for a mild increase of 0.3%. On an annual basis, manufacturing production advanced 4.0% in December, the largest gain since April 2014. Meanwhile, industrial output climbed 1.1% in the same month, compared with the previous month’s downwardly revised increase of 2.0%/ However, the figure topped analysts’ forecasts of a 0.2% decline. Year-over-year, industrial production jumped 4.3%, the strongest increase since January 2011. Furthermore, the ONS reported that the UK construction sector also grew at a stronger than anticipated pace, rising 1.8% in December, while economists predicted an increase of 1.1%, following November’s upwardly revised 0.4% increase. Separately, the ONS reported the UK’s trade gap narrowed to 10.9 billion pounds in December, whereas analysts expected an increase to 11.5 billion pounds in the reported period. Meanwhile, November’s deficit was revised down to 11.6 billion pounds from the originally reported 12.2 billion pounds.
