UK DATA: Oct manufacturing output -1.3% m/m; -2.1% y/y
-Oct industrial production -0.8% m/m; -3.0% y/y
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Manufacturing output fell sharply on the month in October as output
of alcoholic beverages and pharmaceutical goods declined. These latest
figures are very dissapointing and show manufacuting getting off to a
bad start to Q4 following a 0.7% rise on the quarter in Q3. Output has
been negative on a trend basis throughout most of 2012 and this looks
set to continue with the sector subtracting from overall GDP growth in
the final quarter of the year. Moreover, the expected bounceback in
industrial production, following a large drop last month due to a plunge
in mining and quarrying output didn’t happen as oil output continued to
be affected by the closure of the Buzzard oil/gas field. Production
could prove to be a large drag on GDP in Q4.