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.