An unexpected decline in housebuilding meant the UK construction industry contracted for the ninth month in a row in January. Figures from the Office for National Statistics also showed a rise in the cost of imports, mainly higher priced fuel, led to the trade deficit increasing from £11.8bn to £12.3bn. Alan Clarke, a UK economist at Scotia Bank, described the 0.1% rise in UK manufacturing output in the first month of the year as “dreary” and “below the sector’s batting average”. Jeremy Cook, the chief economist at currency dealer WorldFirst, said the most important ONS figure was the UK’s trade deficit, which had worsened and looked vulnerable to an escalation of protectionist trade barriers. She also warned against a tit-for-tat trade war that would harm the UK more than most countries.

Source: The Guardian March 09, 2018 12:16 UTC