UK industrial production growth accelerated in July, according to the latest official figures. Data from the Office for National Statistics showed that production expanded by 0.5% compared with June’s revised figure of 0.3%; this was the fastest growth since February.
Production for July had been forecast to rise by 0.2%. Year on year, industrial output grew by 1.7% in July, faster than the 1.2% increase seen in June and better than economists’ expectations of 1.3%.
Meanwhile, the UK’s trade gap widened unexpectedly in July to the highest monthly shortfall since April 2012, as imports rose to a nine-month high. The trade deficit increased to £10.2 billion from £9.4 billion in June, the ONS revealed. It had been forecast to narrow to £9.1 billion.
Lee Hopley, chief economist at the EEF manufacturers’ organisation, said: “Manufacturing remains on track for growth of over 3% this year, with sectors such as rubber and plastics, non-metallic minerals and mechanical equipment continuing to post strong output gains.
“However, weakness in overseas markets remains a drag. Despite increasing over the month, goods exports fell 0.3% in the three months to July, amid an increasingly uncertain overseas environment.
“This could make sustaining growth more challenging, so it is critical that efforts are maintained to keep growth on track in manufacturing and across the whole economy in the remaining months of this parliament.”