UK Factory Output Fell in March

Britain's manufacturing sector contracted during March, according to figures released by the Office for National Statistics, which emphasizes the “sluggish” economic performance in the first quarter.

While heavy snow storms swept through Britain in early March, the ONS reiterated its earlier statement that this had little overall impact on the economy's performance in the first three months of 2018.

Manufacturing output dropped 0.1 percent compared to the previous month as both domestic and export orders fell, the ONS said. Overall industrial output, which includes utilities and the UK's North Sea oil and gas fields, increased by 0.1 percent.

“Manufacturing was broadly flat throughout the first quarter following several months of strong growth, with no evidence that the bad weather hampered UK factories as both domestic and international sales stalled. Machinery, transport and computer manufacturers all saw their output grow. This was largely offset by falling production of electrical equipment and oil refining”, according to ONS head of national accounts Rob Kent-Smith.

A lack of clarity around Britain's terms of departure from the European Union in less than a year, as well as a slowing eurozone economy, are among reasons cited for Britain's disappointing performance of late.

The ONS said the impact from the recent data on its preliminary estimate of first quarter economic growth, which showed only a 0.1 percent quarter-on-quarter increase, was negligible.

Separate ONS data showed Britain's goods trade deficit with the rest of the world grew to 12.287 billion pounds in March from 10.414 billion pounds in February. Nonetheless, the ONS indicated that net trade was likely make a very small positive contribution to economic growth in the first quarter.

The ONS also published figures for construction output, which fell 2.3 percent on the month in March, after a fall of 1.0 percent in February.

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