British industrial output drops in August

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British industrial production declined out of market expectation as manufacturing, mining and electricity sectors plunged by a big margin, according to official figures released on Wednesday.

The Office for National Statistics (ONS) showed that industrial output decreased by 1.5 percent in August of this year compared with the same period of last year, and fell 1.1 percent compared with the previous month.

Previous market expectation for the August's industrial production was an increase of 0.4 percent.

The ONS attributed the decreases to manufacturing output, which accounts the largest part of the country's industrial production, as well as mining and quarrying, and electricity, gas, steam and air conditioning sector.

Manufacturing output dropped 0.2 percent year on year in August and 1.2 percent compared with the previous month; mining and quarrying fell 10.1 percent, and the electricity, gas, steam and air conditioning sector, down 3.5 percent.

The decreases in manufacturing was mainly blamed for production of machinery and equipment, basic pharmaceutical products and pharmaceutical preparations, and basic metals and metal products, the ONS said.

However, production of transport equipment was exceptional, posing a surge of 12.5 percent in August year on year, which was mainly driven by robust production of motor vehicles, trailers and semi-trailer.

The ONS also released figures on Britain's trade in August, which was similar to that in July.

Britain's deficit on trade in goods and services was estimated to have been 3.3 billion pounds (5.28 billion dollars) in August, compared with a deficit of 3.4 billion pounds in July.

There was a deficit of 9.6 billion pounds on goods, partly offset by an estimated surplus of 6.3 billion pounds on services, said the ONS.

Exports of goods to countries outside of the European Union (EU) increased by 700 million pounds to 12.3 billion pounds. Exports to countries within the EU decreased by 400 million pounds over the same period to 12.8 billion pounds. (1 pound = 1.6 U.S. dollars) Endi

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