Drop in car production hits UK industrial output 0


UK industrial production dropped in the second half of 2017, the latest figures have revealed.

The numbers, revealed by the Office for National Statistics (ONS), saw industrial output fall by 0.4%, most due to a 0.6% drop in production.

This was primarily down to a 3.6% drop in the production of transport equipment, including motor vehicles.

Car production fell by 6.7% from May to June, the biggest drop since December 2013.

The disappointing car production figures revealed by the ONS match similar downbeat statistics released by the Society of Motor Manufacturers and Traders (SMMT) last month, showing overall car production figures in June down by 13.7% on the same time last year.

The number of cars exported was also down, rebuffing hopes that the current weakness of Sterling would help UK car manufacturers offer foreign buyers competitive prices.

Howard Archer, chief economic adviser to the EY Item Club, said: “With sterling’s deprecation and a healthy world economy supporting exporters, one would hope that the gap between the two will narrow in a favourable direction. That said, there was little sign of this in June’s trade numbers.

“A fall in exports and rise in imports caused the monthly trade deficit to nearly double. And, a deficit of £8.9bn in Q2 suggests that net trade made no contribution to growth in the quarter. Evidence of rebalancing, at least in the ‘hard’ data, remains absent.”


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