British official industrial output slumps

07 Nov, 2012

Britain's industrial output tumbled by 1.7 percent in September from the August level, official data showed on Tuesday, sparking concern over the strength of the nation's economic recovery. Industrial production also sank by 2.6 percent in September on a 12-month comparison, the Office for National Statistics (ONS) added in a statement.
The data was much weaker than market expectations, which had been for a smaller monthly drop of 0.4 percent and for an annual decline of 1.3 percent, according to analysts polled by Dow Jones Newswires.
The main cause was the oil and gas sector, where extraction tumbled by 20.9 percent - the biggest drop since records began in 1997. The ONS said maintenance on a number of sites caused the output drop.
Capital Economics analyst Samuel Tombs said that the industrial production data suggested that "the economic recovery is quickly losing momentum again".
The ONS added that manufacturing output, which excludes mining and quarrying, as well as the electricity, gas and water supply sectors, rose 0.1 percent in September from August, but fell by 1.0 percent on an annual basis.
House prices slip
British house prices slid in September, falling for a fourth month in a row, as the weak economy weighed on the property market, a leading survey showed on Tuesday.
House prices fell 0.7 percent in October, after falling by 0.4 percent the previous month, according to data from home-loans provider Halifax.
Halifax, which is part of state-controlled Lloyds Banking Group, added that the average house price in Britain stood at £158,426 ($253,231, 197,777 euros) in October, which was 1.7 percent lower than one year ago.

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