Industrial output falls well below forecast
Industrial output again fell short of expectations in April in a further sign of a slowdown in the economy.
Figures from the Office for National Statistics (ONS) showed industrial output grew just 0.2 per cent in April, below consensus forecasts of 0.7 per cent and disappointing news for Chancellor Philip Hammond.
Output was down 0.8 per cent year-on-year and the poor performance, which follows three consecutive months of falling figures, was put down to lacklustre manufacturing growth.
Stronger energy production and factory output failed to make up for the sluggish manufacturing figures, which also missed forecasts and were flat year on year.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “April’s modest rise in industrial production reverses only a tiny fraction of the 1.8 per cent fall between December and March and so will increase concerns that the overall economy is stagnating.”
Construction output also fell month-on-month in April, the ONS said, dropping 1.6 per cent month-on-month, driven by falls in both repair and maintenance and new work.
The figures point to a further slowdown in momentum for the UK economy following the country’s decision to quit the EU last year and come amid political turmoil after the shock general election result.
Tombs added: “Looking ahead, we expect manufacturing output to revive slowly, as moderate growth in exports offsets weakness in domestic demand.”