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UK manufacturing output sank in July

Staff Writer |
Manufacturers pulled back more than expected after the Brexit vote, although economists were wary of drawing too many conclusions from the data just yet.

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Industrial production in fact grew more quickly than expected in July as a sharp jump in mining production more than offset a surprisingly weak performance from manufacturers in the wake of the Brexit vote.

Total output expanded by 0.1% month-on-month, according to the Office for National Statistics, besting forecasts for a drop of 0.2%.

Manufacturing production on the other hand sank 0.9% over the month its biggest fall in a year and third consecutive monthly decline.

Acting as an offset, the always volatile mining sector boosted production by 4.7% month-on-month, with output from energy and water supply rising by 0.4% and 0.7%, respectively.

Overall, the data pointed to Britain's gross domestic product stagnating in the third quarter or, possibly, shrinking slightly, according to economists.

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