UK industrial and manufacturing production drop in November

UK manufacturing and industrial production fell in November, missing economists’ expectations.

According to data released by the Office for National Statistics, industrial production dropped 0.7% from October compared with consensus expectations for no change, marking its biggest monthly decline since early 2013.

Manufacturing output, meanwhile, slipped 0.4% versus expectations for a 0.1% increase.

Manufacturing production decreased 1.2% from November 2014, which was worse than the 0.8% slide forecast by economists, while industrial production grew 0.9% on the year, also falling short of expectations for a 1.7% rise.

Chris Williamson, chief economist at Markit, said: ““Clearly, the industrial sector looks to have once again made no contribution to economic growth in the closing quarter of 2015, leaving the economy reliant on the services sector to sustain the upturn.

“Weakness in part reflects the struggling energy sector as the industry adjusts to lower oil prices and saw demand slump amid unseasonably warm weather."

"However, manufacturers are also having a torrid time. Producers are having to deal with a toxic combination of a historically strong exchange rate, weak global demand, intensifying competition, notably from the US and continental Europe, as well as growing uncertainty about the outlook at home and abroad. None of these factors are like to disappear any time soon, leaving industry facing further hard times in 2016 and the economy worryingly unbalanced.”