UK manufacturing output likely dropped in June; trade deficit expected to have widened

Manufacturing output of the UK is expected to have dropped in June. As the Office for National Statistics (ONS) gives preliminary estimates of the monthly growth rates in the initial estimate of the GDP growth for the quarter, it is easier to project the output components of GDP, said Societe Generale in a research report. UK’s manufacturing output is expected to have dropped 0.7 percent in June on month-on-month basis, while industrial output is likely to have grown 0.2 percent, following the decline of 0.5 percent in May, added Societe Generale.

Meanwhile, the country’s trade deficit is expected to have widened in the month of June. For many years, trade deficit has been stuck in a channel, unsuccessful in responding to the rebound in growth in its major trade partner, Europe. Certain improvement has been seen in UK trade in the recent months. However, it is uncertain that this will last. Thus, trade deficit is expected to have deteriorated to GBP 2700 million from GBP 2263 million in June, according to Societe Generale.