Manufacturing production in the United Kingdom registered the highest fall in a year, taking cues from the fallout of Brexit vote in a referendum held on June 23 that shook global financial markets, but may be short-lived.
UK’s manufacturing output fell 0.9 percent from June, far exceeding the 0.3 percent decline forecast in a Bloomberg survey, data released by the Office for National Statistics showed Wednesday. Total industrial production rose 0.1 percent, thanks to a jump in oil and gas output.
The drop in factory output was the third in succession. Overall production was boosted by a 5.6 percent increase in oil and gas extraction along with higher output at utilities. Industrial production rose 2.1 percent from a year earlier, with manufacturing gaining 0.8 percent.
"The future health of the manufacturing sector remains very uncertain," Bloomberg reported, citing Chris Williamson, Chief Economist, Markit, which produces the monthly PMI surveys.
Meanwhile, key measures of manufacturing and services both faced a strong rebound in August, further boosting hopes that Britain will avoid the recession predicted by some in the aftermath of the June 23 referendum.
