Oil pipeline shutdown hits United Kingdom industry but manufacturing and construction grow

Forties

Forties

Industrial output decreased 1.3 percent month-on-month in December, which was the first fall in nine months.

Construction also showed an increase in December.

United Kingdom construction output also showed a surprise surge in December, according to official data published today.

Falling exports and rising imports drove Britain's trade deficit higher in December, thanks partially to the rise in oil prices, the Office for National Statistics reported on Friday.

Export volumes fell 0.6% quarter on quarter, while imports rose by 1.7%.

The ONS said Britain's manufacturing sector saw output rise by 0.3 percent on the month, this being the eighth consecutive month of growth.

While today's figures showed the hit was bigger than thought, the pipeline is back online so a corresponding rebound in production looks likely in January.

This data is unlikely to change the analysis conducted by Bank of England (BoE) officials who on Thursday upgraded their growth forecasts for Britain mainly due to the improving global economy.

On a three month basis, United Kingdom goods imports were up 0.3 per cent and exports up 2.9 per cent, leaving the trade balance at £37.2bn.


The Bank of England also said that United Kingdom interest rates were likely to need to rise sooner than it had thought past year.

This marked the eighth consecutive month of growth in the sector - the longest such run in almost 30 years.

ONS senior statistician Ole Black said: "Manufacturing continued to grow strongly in the last three months of the year, with metal goods and pharmaceuticals driving growth". The ONS commented saying the industrial and construction data did not alter the estimate.

On trade, the ONS said goods imports exports rose 1.5 per cent in December to £29bn while imports were up 3.8 per cent at £41.5, leaving the overall balance at £13.6bn, the highest since September 2016.

Economists polled by Reuters had expected a smaller shortfall of £11.6 billion.

A routine inspection found a hairline crack in the pipe south of Aberdeen, prompting emergency repairs that stopped the flow of oil and gas from platforms feeding into the system for nearly a fortnight, pushing oil prices above $67 a barrel - then its highest since 2015.

Separately, the ONS said construction output jumped 1.6% on the month.

"The positives were ongoing marked strength in manufacturing output and a welcome pick-up in construction output - although this was not enough to prevent clear contraction over the fourth quarter".

Recommended News

  • Congress approves budget, Trump signs off to reopen the federal government

    Congress approves budget, Trump signs off to reopen the federal government

    Rand Paul to block the vote, which ultimately led to the shutdown that began at midnight Friday morning. The bill was expected to pass, but vote counts remained unclear Friday morning.
    Larry Nassar moved to federal prison

    Larry Nassar moved to federal prison

    Chatman said Chloe remained fully clothed, "but since she was covered, I was unaware of what he was doing under the sheet". Raisman said she and teammates discussed the abuse they suffered at the hands of Nassar in front of Geddert.
    United States  jobless claims fall

    United States jobless claims fall

    On balance, claims data continue to imply that labor market conditions remain strong, noted Barclays in a research report. New unemployment claims in the United States fell by 10,000 to 224,500 in January - the lowest figure since 1973.
  • Donald Trump blocks release of memo drafted by Democrats on Russian Federation  probe

    Donald Trump blocks release of memo drafted by Democrats on Russian Federation probe

    DOJ staffers would be available "should the committee wish to revise the February 5 memorandum to mitigate risks identified", Mr. Last week, Republicans on the House Intelligence Committee voted to release the so-called "Nunes memo".
    Scenes from the Eagles' Super Bowl parade

    Scenes from the Eagles' Super Bowl parade

    The mainly African-American players have been taking a knee during the Star-Spangled Banner to protest police brutality and racial injustice.
    Investor Murthy arrested for sexual harassment

    Investor Murthy arrested for sexual harassment

    They wrote to the DGP alleging that there have been several complaints against him for objectionable, derogatory, sexual and obscene signs on social media.
  • Research Report for Investors: Gilead Sciences Inc. (NASDAQ:GILD)

    Ingalls & Snyder Llc decreased Verizon Communications Inc (NYSE:VZ) stake by 9,243 shares to 290,125 valued at $14.36M in 2017Q3. Following the transaction, the executive vice president now directly owns 62,738 shares in the company, valued at $5,239,250.38.
    Jerusalem recognition was likely most memorable event of first year in office

    Jerusalem recognition was likely most memorable event of first year in office

    "It was very important that I recognized Jerusalem as your attractive capital city". But it was a very important pledge that I made and I fulfilled my pledge".
    US VP Pence skips Olympic dinner: Seoul

    US VP Pence skips Olympic dinner: Seoul

    North Korea's appearance follows a rapprochement between the two Koreas on the divided peninsula ahead of the Games. A delegation from North Korea, dressed in identical garb, watched from an upper deck of the stadium.
  • USOC: No plans for American bid for 2026 Olympics

    USOC: No plans for American bid for 2026 Olympics

    On Monday, Nassar was handed an additional 40 to 125 years for three separate counts of sexual assault in Eaton County, Michigan . He said that he listened to all the impact statements and "felt their sense of betrayal, sorrow, and anger".
    SpaceX launches Falcon Heavy rocket into space

    SpaceX launches Falcon Heavy rocket into space

    The rocket will have a giant, 12-meter fuel tank and new engines that are more powerful than those of its predecessor. According to enthusiasts at space.stackexchange forum, the sports auto would have reached Mars in October this year.
    Kim Jong Un invites South Korean President to Pyongyang

    Kim Jong Un invites South Korean President to Pyongyang

    The commentary says Washington is seeking to undermine the Olympics and subvert efforts to improve inter-Korean relations. For the people of the Korean Peninsula, that was likely more significant than Pence's non-interaction with Kim Yo-jong.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.