UK Manufacturing Grew Again in October

A construction site in London

A construction site in London

On a yearly basis, industrial production growth accelerated to 3.6 percent from 2.5 percent in September.

United Kingdom manufacturers eked out some growth in October, but construction output fell drastically, according to a mixed batch of data from the Office for National Statistics.

United Kingdom manufacturing output expanded for the sixth consecutive month in October, helped by record auto production.

There was a 20.7 per cent annual increase in auto export revenues, which reached a new record of £4bn, the ONS said.

ONS statistician Kate Davies said: "While manufacturing was relatively subdued overall in October despite record production of cars destined for export, the longer-term picture is one of strong growth".

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The ONS also reported that the UK's goods trade balance in October was £10.8bn, up from £10.4bn in the previous month.

Builders have struggled in 2017 as work on existing infrastructure and commercial work has come to an end without new projects to replace them.

"However, construction orders for future work received a huge boost in the third quarter as many large HS2 contracts were awarded".

This exceeded the previous quarterly record rise of 32% back in 1987, when new orders were placed for the construction of the Channel Tunnel.

"Brexit uncertainty will continue to hit commercial projects, while a planned 4.5 per cent decline in public sector investment next year will additionally dampen the sector", he said.

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