– Adds Detail To Version Transmitted At 0834GMT
– August manufacturing output -1.1% m/m; -1.2% y/y
– August industrial output -0.5% m/m; -1.2% y/y

LONDON (MNI) – Manufacturing output fell back sharply in August
after July saw it recover strongly from the Jubilee led downturn in
June, with industrial production also falling, hit by a sharp drop in
gas production.

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

In the three months to August, manufacturing output dropped 0.7%
compared with the previous three months, having risen 0.1% in the three
months through July.

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

Industrial production was hit by a marked decline in energy supply
output, which fell 0.6% on the month and 1.7% on the year. The biggest
factor in this fall was gas supply, which was down 9.4% on the
month and down 20.6% on the year.

In terms of manufacturing sub-sectors, nine sub-sectors fell and
four rose on a year ago. The largest negative contributions in
manufacturing came from the manufacture of chemicals and chemical
products which fell 9% on the year. The largest upward contribution came
from the manufacture of transport equipment which rose 11%.

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$]