Mixed picture for United Kingdom growth as construction sector slumps


At 4.30 am ET Friday, the Office for National Statistics publishes United Kingdom industrial and construction output and foreign trade figures.

"Past experience suggests that the impetus to growth in manufacturing output from the weaker exchange rate will fade soon, now that 18 months have passed since the biggest decline in sterling", said Samuel Tombs of Pantheon.

On a yearly basis, industrial production growth accelerated to 3.6 percent from 2.5 percent in September.

Manufacturing accounts for around 10 per cent of overall UK GDP and construction 6 per cent. Manufacturing, which makes up the bulk of industrial output, has been helped by a global upswing in trade and investment and continued to grow in October, by 0.1 per cent month-on-month and at an annual pace of 3.9 per cent.

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The total trade deficit widened by £300 million to £1.4 billion between September and October following a 1.6 per cent jump in goods imports.

The growth in new orders is the highest on record, beating the previous high set in 1987 when orders were placed for work on the Channel tunnel.

"However, despite the stronger performance of United Kingdom manufacturers, imports grew more than exports in the three months to October once erratic items were excluded, slightly widening the underlying trade deficit".

Another report from ONS showed that construction output declined 1.7 percent in October partly due to a 1.5 percent fall in all new work.