Industrial production rose by 0.1% in October
With a rise in the mining and quarrying activities, the United Kingdom’s IIP (industrial production index) grew by 0.1% in October compared to an upwardly revised flat reading in September. On an annual basis, the industrial production in the United Kingdom rose by 1.7% in October.
Mining and quarrying activities
In October, three of the four main sectors increased. The largest contributor was mining and quarrying activities. It rose by 8.5%. Mining stocks like Rio Tinto (RIO), Randgold Resources (GOLD), and BHP Billiton (BHP) could be positively impacted by the mining activity. It tried to gain steam in October. Along with mining, there was a rise of 1.7% in the water supply, sewage, and waste management output. This contributed towards the higher production in October.
Manufacturing production fell 0.1% in October
Manufacturing machinery and equipment fell by 15.3%. As a result, the United Kingdom’s manufacturing output fell by 0.1% in October 2015 compared to October 2014. On a monthly basis, the manufacturing output in fell by 0.4% in October.
With a fall in the manufacturing, the iShares MSCI United Kingdom (EWU) fell by 1.8% as of December 8. EWU lost 3.1% over the past month.
Although the industrial production rose in October, manufacturing was still in negative territory in October. The negative growth reflects the challenges that the manufacturing sector faces.
The United Kingdom is one of the crucial nations in the Eurozone (EZU). Any downside has the potential to impact the Eurozone’s growth prospects.
Germany’s trade surplus widened and the United Kingdom’s industrial production was positive. With this positive data, let’s see how the Eurozone’s economic growth fared in fiscal 3Q15.