U.K. industrial production likely to have grown sequentially in July

The U.K.’s economic growth has decelerated from its cycle-high seen in 2014; however, the slowdown has not been as sharp as originally anticipated in the wake of Brexit. However, production in the investment-oriented sectors of the economy continues to be weak in the midst of the uncertainty surrounding the ongoing Brexit negotiations.

Industrial production fell sharply in the first quarter and following two relatively flat readings to start the second quarter, and finally rose 0.5 percent in June. According to the Bloomberg consensus, the U.K. industrial production is expected to have risen again on sequential basis in July. The subdued sterling has possibly given a boost to the U.K. manufacturing sector. Real exports of goods and services have accelerated from the rate seen in the second half of 2016.

Stronger growth in the global economy, particularly in the euro area, to which the United Kingdom ships 40 percent of its exports is also likely to be boosting trade activity. According to consensus expectations, the nation’s industrial production is likely to have risen 0.2 percent sequentially in July.

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