UK industrial output drops in September
UK industrial output fell 0.4 percent in September as unseasonably warm weather hit power production, data from the Office for National Statistics showed on Tuesday.
September’s decreased figure follows the downward trend set in August, despite expectations from Reuters analysts that it would stagnate.
However, factory output surged to its highest level since April, rising 0.6 percent. ONS senior statistician Kate Davies commented:
“Manufacturing was broadly flat across the third quarter while oil and gas were weak overall, with widespread summer maintenance shutdowns hampering production more than usual.
“There are no obvious signs so far of either the weak pound or post-referendum uncertainties affecting the output of UK factories, which continued broadly in line with recent trends.”
German industrial output in surprise fall
German industrial production followed the British sector lower in September, dropping 1.8 percent month-on-month.
The fall was its fastest drop in more than two years, aided by a shrinking trade surplus, the German Economy ministry said on Tuesday. The figures represent a sharp turnaround on August’s unusually strong figure, indicating that Europe’s largest economy may be facing a slowdown.
The Ifo business climate index showed last month that business morale in Germany reached a 2.5 year peak in October. However, Bankhaus Lampe analyst Alexander Krueger told Reuters:
“Compared to the high levels seen in some sentiment indicators, the support for overall economic growth is still limited.”
The German economy has showed signs of a slowdown since Britain’s vote to leave the European Union in June. Weaker investor sentiment is expected to be evident in the third quarter, with weaker growth than the 0.7 percent and 0.4 percent achieved in the first and second quarter respectively. For 2016 as a whole, the government expects growth of 1.8 percent.