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UK industry on track to have boosted economy in fourth-quarter 2017

11 January 2018

LONDON, Jan 10 (Reuters) - British industrial output looks set to make a strong contribution to economic growth in the final months of 2017 but construction is likely to drag, official data showed on Wednesday.

Economic growth slowed in the first nine months of 2017 as higher inflation caused by the fall in sterling after the Brexit vote hurt consumers, although exporters have gained from the weaker pound and the stronger euro zone economy.

Germany reported rapid growth in industrial output on Tuesday and stronger exports and its economy is forecast to grow faster than Britain’s in 2017 and this year.

British industrial output rose by a monthly 0.4 percent in November, compared with 0.2 percent in October, spurring an annual rise of 2.5 percent. Economists taking part in a Reuters poll had expected to see output rise 0.3 percent on the month and 1.8 percent on the year.

Manufacturing, which makes up the bulk of the industrial sector, enjoyed an especially strong three months to November, with output 3.9 percent higher than a year before, its biggest rise since March 2011.

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