– August manufacturing output -1.1% m/m; -1.2% y/y
– August industrial output -0.5% m/m; -1.2% y/y
– UK Manufacturing Falls Sharply, Comes In Below Forecast

LONDON (MNI) – Manufacturing fell back sharply in August after July
saw output recover strongly from the Jubilee led downturn in June,
suggesting that GDP in the third quarter may not bounce back quite as
strongly as previously hoped.

The data, which were somewhat weaker than forecast, are
disappointing after July’s data put trend growth in manufacturing back
in positive territory.

Manufacturing output fell 1.1% on the month in August and was down
1.2% on the year. This was well below the median forecast for a fall of
0.6% on the month and a decline of 0.7% on the year.

In the three months to July, manufacturing output dropped 0.7%
compared with the previous three months.

The wider measure of industrial production fell 0.5% on the month
and was down 1.2% on the year, compared with the median forecast for a
fall of 0.5% on the month and a fall of 1.1% on the year.

Following the sharp rises in July, the August data will weaken
hopes that the sector, which is forecast to bounceback from a decline of
0.5% on the quarter in Q2, can make a significant upward contribution to
GDP in Q3.

–London bureau: 0044 20 7862 7491; email: wwilkes@marketnews.com

[TOPICS: M$B$$$,MABDS$]