United Kingdom manufacturing output falls in May

Manufacturing and construction sectors 'weak' in May, trade deficit widens
UK manufacturing output falls in May
Author

09 July, 2017

"Based on today's data and the business survey results for June, we now think that industrial production is likely to have contracted by 0.5 per cent in the second quarter, with construction output down 1.8 per cent".

Sterling dipped below $1.29 after Friday's data and hit its lowest level since June 28.

"It's all building up a pattern here that says the economy is clearly losing momentum", said Peter Dixon, economist at Commerzbank.

Economists said the figures suggest any rebound in growth from the first quarter will be muted and could delay an interest rate hike by the Bank of England, which is increasingly anxious about import price increases stoked by the pound's sharp fall in value since last year's Brexit vote. It fell by 1.2% in May from April, and was also down 1.2% in the three months to May-the sharpest such drop since October 2015.

Howard Archer, chief economic advisor to the EY ITEM Club, said it was "virtually certain" that construction and manufacturing dragged down economic growth in the second quarter. "Under those circumstances, the timing of the hawks on the Monetary Policy Committee pushing for a rate hike doesn't look great".

Rate-setter Michael Saunders said this week he was "reasonably confident" improving exports and investment would more or less compensate for the consumer slowdown.

Trump asks Xi for help with N. Korea
The 12-mile line is the internationally recognized distance that separates the shores of a sovereign nation from worldwide waters. He pronounced his intention to cooperate with Japan and South Korea to increase pressure on North Korea by enforcing sanctions .

Samsung to invest $380 mn in United States , create 950 jobs
The facility, which will manufacture premium home appliances for the United States market, will eventually employ 954 workers. The investment is about 380 million dollars and will bring with it more than 950 positions over the next three years.

US Banks pass annual Fed stress tests
The CCAR results follow the Federal Reserve's June 22, 2017 publication of its Dodd-Frank Act Stress Test results. An increase in the quarterly common share dividend from $0.095 per share up to $0.105 per share.

Official figures showed manufacturing output dropping 0.2 per cent in May from the previous month compared with forecasts for 0.5 per cent expansion.

Data published on Thursday had shown strong foreign demand raised industrial orders in May, though the increase was less pronounced than expected.

The wider measure of industrial output fell 0.1% following a 0.2% rise in April. It's also said it doesn't want to remain a member of the customs union as that would limit its ability to strike trade deals beyond the EU.

In a separate communique, the ONS said the trade deficit widened by GBP 1 billion to GBP 3.1 billion in May, reflecting an increase in imports of goods.

Within the overall figure, manufacturing output rose 2% on the month.


More news


  • Tesla shares drop as investors are concerned about Overproduction

    Tesla shares drop as investors are concerned about Overproduction

    When Tesla released its delivery and production numbers on Monday, the company noted that production totaled 25,708 vehicles. Ford Motor Company (NYSE:F) retreated its position after shares change of 3.31% on Wednesday and it traded at $11.56.
    Joey Chestnut wins his 10th Nathan's hot dog contest

    Joey Chestnut wins his 10th Nathan's hot dog contest

    Chestnut tweeted earlier that he planned to break his record of 70 from last July 4, and he wasn't shooting for just one more dog. The title of king of the hot dogs has been defended successfully by last year's victor Joey Chestnut .
    2 shot at NYC hospital, says NYPD

    2 shot at NYC hospital, says NYPD

    New York Mayor Bill de Blasio has been briefed on the unfolding situation, according to a tweet from the mayor's office. The Bronx-Lebanon Hospital is known as the largest non-profit health care system in the south and the central Bronx.
  • Horizon Zero Dawn Patch 1.30 Adds New Game+, Ultra Hard Difficulty

    Horizon Zero Dawn Patch 1.30 Adds New Game+, Ultra Hard Difficulty

    A new patch for Horizon: Zero Dawn adds a handful of new features in advance of its upcoming Frozen Wilds expansion. Fixed an issue with "Cauldron Zeta" where for some players the quest log would disappear after completing the quest.
    At least 18 dead in trio of auto  bombings in Damascus

    At least 18 dead in trio of auto bombings in Damascus

    The Syrian interior ministry stated that they were able to intercept and explode two vehicle bombs Sunday morning in Damascus. The third made it into the city center, where the driver blew himself up near Tahreer Square.
    JJ Redick adds Sixers, Timberwolves, and Nets to possible destinations

    JJ Redick adds Sixers, Timberwolves, and Nets to possible destinations

    He averaged a career-high 18.1 points and 3.7 assists this past season and also grabbed 7.7 rebounds. Redick to a one-year contract that will pay him an absurd $23 million in cold hard cash.
  • Lilian Calmejane grits teeth to win Stage 8 of Tour de France

    Lilian Calmejane grits teeth to win Stage 8 of Tour de France

    In a stage featuring two category-four climbs, breakaway rider Quemeneur took the honors on both summits for Direct Energie . FACT OF THE DAY: For the first time since 2011, Alberto Contador wrapped the opening week of racing on the Tour de France .
    Saudi Bloc Slams Qatar But Stops Short of Imposing New Sanctions

    Saudi Bloc Slams Qatar But Stops Short of Imposing New Sanctions

    He also described Doha's response as a "position that reflects a failure to realise the gravity of the situation". The GCC includes Saudi Arabia , the UAE, Bahrain, Oman, Kuwait and Qatar .
    December Fed hike odds barely budge after FOMC minutes

    December Fed hike odds barely budge after FOMC minutes

    With the U.S. economic picture beginning to show cracks, there is reason to believe a September rate hike may not be advisable. Meanwhile, U.S. officials will soon confront the challenge of raising the debt ceiling to continue to fund the government.
  • KL-bound AirAsia X flight diverted to Brisbane

    KL-bound AirAsia X flight diverted to Brisbane

    The airline said it would arrange another flight to Kuala Lumpur for passengers as soon as possible. John Warren said there were loud bangs from the right wing of the A330 and "fairly big flames".
    Michigan SOS limits voter data provided to Trump panel

    Michigan SOS limits voter data provided to Trump panel

    Frosh (D) on how to respond to the unprecedented request, which was made last week. The Maryland board had sought advice from state Attorney General Brian E.
    Jeff Teague to Timberwolves

    Jeff Teague to Timberwolves

    The draft pick is the Thunder's 2018 first-round choice, acquired by Utah in the 2015 Enes Kanter trade, and is top 14 protected. The deal was reported by the Associated Press just minutes after free agency's official 11 p.m. central start time.