For the past 23 years, the longest time the UK plant has seen its production rise, pushing the economy out of its fastest growth since the second half of 2016 is one of the country’s leading think tanks.
According to the National Institute of Economic and Social Research, gross domestic product (GDP) grew by 0.6% in the last quarter of 2017, up from 0.4% in the previous three months, above the latest urban forecast.
Amit Kara, head of macroeconomic forecasting at Britain’s Nysal, said the economy started to weaken in the second half of the year, when GDP in the first two quarters grew by 0.3%.
Kara said: “The economic recovery is driven by the manufacturing and service industries. Driven by the weak Sterling and the global economic downturn, construction output continues to lag.
“In November, we forecast a 0.5% GDP growth rate in the last quarter, so today’s revised forecast shows that economic activity has increased more than previously expected.”
The think tank’s stronger-than-expected economic performance, combined with inflation above 2%, will lead the Bank of England to raise interest rates by 0.25 basis points to 0.75% in May and raise it further every 6 months until mid-2021 when official borrowing The cost has reached 2%.
According to the data from the National Bureau of Statistics (ONS), the number of British factories increased output for the eighth straight month in November last seen in May 1994 as a feat by a broad-based recovery helping the manufacturers in the global economy . For the three months ending in November, manufacturing output increased 1.4% over the previous quarter.
The increase in factory production contributed to the overall increase in industrial production, which included a 0.4% increase in the production of mines, quarries, the oil and gas industry and energy plants during this period. After the cold October weather, the cold spell of November made energy production stronger.
In the manufacturing sector, machinery and equipment manufacturing industry contributed the most to the growth and large-scale work such as renewable energy projects improved.
Ole Black, director of the Bureau of Statistics, said: “The manufacturing sector generally enjoyed strong growth with significant increases in renewable energy projects, shipments, aircraft and car exports.
Improving industrial production in the foreground, at around 14% of GDP, has helped to offset the rise in consumer spending on stuttering, which has been devalued by the cost of imported goods, as the Brexit vote.
The construction industry has been in difficult times for more than five years, contracting by two percentage points in the three months to November, the sixth consecutive drop. Despite a slight decline in the quarter, it recorded a slight increase of 0.4% in November from a year earlier.
A stronger global economy is helping the United Kingdom to export more goods and services to the rest of the world. ONS said that while Britain continued to import more than exports, as in the past few years, the UK deficit narrowed by ￡ 2.1 billion by the three months to November.
Black said: “The trade deficit narrowed in the past three months mainly due to the increase in service exports and the increase in shipments of works of art and cars. In the past year, the export of goods, especially automobile, machinery and crude oil, continued to grow at a high growth rate Imported. ”