UK Economy
UK industrial production dips in August and rebounds in Germany
By Finfacts Team
Oct 10, 2013 - 3:58 AM

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Source: Office for National Statistics

UK industrial production for August dipped 1.1% in the month, abruptly ending a series of positive data on the British economy in recent months while in Germany, output rebounded after a dip in July.

Figures published by the Office for National Statistics on Wednesday showed UK industrial production dropped to its lowest level in almost a year, with manufacturing decreasing by 1.2% in August after two consecutive increases.

Production was 1.5% below the level in 2012.

The main components contributing to the decrease in manufacturing between July 2013 and August 2013 were the manufacture of basic pharmaceutical products & pharmaceutical preparations; the manufacture of computer, electronic & optical products; and the manufacture of food products, beverages & tobacco.

The trade deficit for goods and services narrowed slightly to £3.3bn in August from £3.4bn in July. The goods trade deficit fell from £9.94bn in July to £9.63bn in August, boosted by a 1.1% month-on-month increase in exports and a 0.1% fall in imports. The gap in non-EU trade narrowed, but trade with the EU worsened. The services surplus narrowed from £6.5bn to £6.3bn.

In Germany, industrial production in made a strong rebound in August led by higher demand for cars and capital goods.

German industrial production climbed 1.4% in August after falling by a revised 1.1% in July, data from the German economics ministry on Wednesday showed.

"The upward trend of production in the manufacturing industry continues. The weakness of the winter season is over," the ministry said in a statement.

There was a 13.6% surge in car production, followed by 4.4% jump in capital goods output.

Construction was down 1.9% month-on-month in August, and energy production dipped 0.2%.

Compared to a year ago, overall industrial production was at -0.8%.

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