Manufacturers’ exports hit by weak Eurozone
THE UK’s manufacturing output dipped in October due to waning export demand from the Eurozone.
Total manufacturing output fell by 0.7 per cent in October compared with September, according to figures published by the Office for National Statistics yesterday.
Industrial production – which includes mining and quarrying, as well as manufacturing – fell 0.1 per cent on the month.
The lower-than-expected result caused a decline in the now-casting index (NCI), which measures the health of the economy. The NCI released today by Now-Casting Economics edged down to 123.1 for December from 124.88 in November. Average growth is marked by a score of 100, which means the UK economy is still doing relatively well despite a mild slowdown.
The NCI uses a weighted average of the latest data to give an up-to-date representation of economic health.
The biggest boost to the figure over the past month was much-higher-than- expected growth in the services sector reported by surveys such as a recent purchasing managers’ index.
“Manufacturing output showed some signs of fatigue with the deterioration of global economic conditions and weak outlook in key export markets bearing down on output,” said Lee Hopley, economist at manufacturers’ body EEF.
“Most of the drag, however, was concentrated in the electronics sector, where large exposure to the German market has taken its toll on production.”