INSTANT VIEW 3-UK Aug factory output falls, trade deficit widens
LONDON, Oct 9 (Reuters) - British factory output fell morethan expected in August and the country's trade deficit widenedsharply, data showed on Tuesday, dampening prospects of asustained recovery in the second half of 2012.
Following is a summary of the data and economists'reactions.
ANALYST VIEWS ALAN CLARKE, SCOTIABANK:
"The industrial output was disappointing but not a majorsurprise. Overall it was down half a per cent, but I wasexpecting a bit worse.
"So if you factor that into the likely GDP output for Q3,we'll be looking at a gain of about three quarters of a percent.We ought to know much more when the construction industry datacomes out next week.
"As for Q4, it's obviously very early days, but once thelights went out on the closing ceremony of the Olympics, we werelooking for a bit of payback.
"There's still time for the growth surveys to improve andget the economy back on track."
BRIAN HILLIARD, SOCIETE GENERALE:
"I am not surprised to see a dip in the manufacturingnumbers given that we had an exaggerated bounce the previousmonth. It's heartening to see a little bit of continuing growthin North Sea oil and gas output, which I think is still on adownward trend."
******************************************************* MANUFACTURING OUTPUT AUG JULY (PRV JULY) FCAST Mth-on-mth change in pct -1.1 3.1 (3.2) -0.6 Yr-on-yr change -1.2 -0.7 (-0.5) -0.6 3-mth/3-mth change -0.7 0.1 (0.2) INDUSTRIAL PRODUCTION Mth-on-mth change in pct -0.5 2.8 (2.9) -0.5 Yr-on-yr change -1.2 -0.8 (-0.8) -1.1 3-mth/3-mth change -0.1 UNCH (UNCH) TRADE FIGURES AUG JULY FCAST Goods balance -9.844 -7.337 (-7.149) -8.50 Non-EU goods balance -4.972 -2.929 (-2.877) -4.00 EU 27 goods balance -4.872 -4.408 (-4.272)
- Biggest total goods and services trade deficit sinceApril 2012, second-highest on record
(Reporting by Olesya Dmitracova)
((olesya.dmitracova@thomsonreuters.com; +44 20 7542 8051;Reuters Messaging:olesya.dmitracova.thomsonreuters.com@reuters.net))
Keywords: BRITAIN ECONOMY/