By Jason Douglas

 

LONDON--British manufacturing output slumped in October, as weak demand for motor vehicles led to shutdowns at factories.

The figures add to signs the U.K. economy is slowing as uncertainty over the country's future ties to the European Union intensifies.

Manufacturing output declined 0.9% between September and October, the Office for National Statistics said Monday, the steepest drop since May.

Output fell sharply in sectors including transport equipment, pharmaceuticals and chemicals. Motor-vehicle production fell 6.6% on the month, reflecting temporary factory closures caused by subdued domestic demand for cars and trucks.

British lawmakers are expected on Tuesday to reject the terms of a Brexit deal agreed by Prime Minister Theresa May and the EU, throwing the U.K.'s March withdrawal from the bloc--and Mrs. May's premiership--into turmoil.

Lawmakers' opposition to the deal reflects deep splits in Parliament and the country at large over how close the U.K.'s ties to the EU should be. A key sticking point is how to manage the post-Brexit border between Northern Ireland, part of the U.K., and the Republic of Ireland, an EU member. Northern Irish lawmakers on whom Mrs. May relies on to govern are hostile to proposals in the withdrawal plan that could require Northern Ireland to follow EU customs rules and product regulations even as the rest of the U.K. charts a new course.

Such uncertainty over Brexit appears to be taking a toll on consumer and business confidence, economists say, though overall the economy has broadly performed better than many expected since Britons voted to leave the EU in June 2016.

The economy expanded 0.4% in the three months through October, an annualized rate of 1.4%, the ONS said. That's a slower pace of growth than the summer, though a similar one to earlier in the year.

 

Write to Jason Douglas at Jason.Douglas@wsj.com

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(END) Dow Jones Newswires

December 10, 2018 04:53 ET (09:53 GMT)

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