Activity in both the UK’s manufacturing and the construction sectors fell in May, suggesting that several key economic figures have been impacted by continued political and economic uncertainty.
According to an update from the Office for National Statistics, released on Friday, activity in the production sector was ‘weak’ in May. Manufacturing output fell by 1.1 percent in the 3 months to May, the largest 3-month on 3-month fall since July 2015 and below market expectations.
The fall was largely driven by the manufacture of motor vehicles, trailers and semi-trailers, which fell by 4.4 percent in the month.
Widening trade deficit
The total trade deficit widened by £2.0 billion to £8.9 billion in the 3 months to May, driven by large increase in imports in March and then a further increase in May.
Construction output falls
The ONS confirmed that although output remains at a relatively high level, total real construction output fell by 1.2 percent on both a monthly and 3-month on 3-month basis in May. The figure is now 2.9 percent below January’s recent peak and marks the second monthly decline in total real construction output.
ONS senior statistician Kate Davies commented:
“Activity in the production sector was broadly unchanged in May, though the underlying position is weaker with both total output and manufacturing falling in the three months to May compared with the previous three months. Construction output also fell on a three-monthly basis, though this is after several years of growth.
“Meanwhile the total trade deficit widened by £2 billion in the most recent three months, primarily due to high imports especially from outside the European Union.”