UK factories start 2018 in low gear

london — British industry kicked off 2018 in low gear and a downturn in construction deepened, according official data on Friday that suggested Britain’s economy remains on a slow path ahead of Brexit.

Britain went from being the fastest-growing Group of Seven economy to the weakest last year as the Brexit vote weighed on household spending and investment by companies.

Manufacturing output, which has been a bright spot thanks to the strong global economy, inched up only 0.1 percent month-on-month in January after a 0.3 percent rise in December, the Office for National Statistics said. That was slightly weaker than the consensus in a Reuters poll of economists that pointed to 0.2 percent rise.

Nonetheless, January marked the ninth month in a row of manufacturing growth in monthly terms - the longest such run since records began 50 years ago. But the overall picture was one of slowing momentum. Over the three months to January, manufacturing output rose 0.9 percent, the weakest pace since mid2017. “The impetus to growth from sterling’s 2016 depreciation is beginning to tail off,” economist Samuel Tombs from Pantheon Macroeconomics said. British financial markets showed little reaction to the data.

Construction output plunged 3.4 percent month-on-month in January after a 1.6 rise in December, the biggest drop since June 2012 and worse than any forecast in the poll. —