UK Manufacturing Stunted by Car Industry
December 10 2018 - 5:08AM
Dow Jones News
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
-0-
(END) Dow Jones Newswires
December 10, 2018 04:53 ET (09:53 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.