UK industrial output unexpectedly falls in June
LONDON, Aug 6 (Reuters) - British industrial output unexpectedly eased in June as the production of oil and gas and mining fell, official data showed on Thursday.
Industrial output fell 0.4 percent in June, against expectations for a 0.1 percent rise and from a 0.3 percent increase in May, the Office for National Statistics said.
However, output in manufacturing increased 0.2 percent in June, as expected by economists in a Reuters poll, partially recovering from a 0.6 percent drop in May.
There was a broad slowdown in oil and gas production, partly due to maintenance in a major oil field, the ONS said. Falling 5.8 percent in June, it was the biggest monthly drop in oil and gas production since January 2014.
The ONS revised down its estimate for industrial output growth in the second quarter to 0.7 percent on the quarter from 0.1 percent. But that would have a negligible impact on economic growth for that period.
Britain's manufacturers have struggled this year due to weak demand from crisis-stricken Europe and a sharp strengthening of the pound.
A survey this week showed Britain's manufacturing sector growing only weakly in July, underscoring the challenge for policymakers to achieve more balanced long-term economic growth.
Britain's solid economic rebound has been driven by the services sector.
Compared with a year ago, industrial output was up 1.5 percent, undershooting a Reuters poll forecast for growth of 2.2 percent in June.
The data release comes shortly before the Bank of England announces its latest interest rate decision.
The Monetary Policy Committee is expected to leave borrowing costs unchanged at 0.5 percent but to show a split for the first time this year on the need to raise rates immediately.
((Reporting by Ana Nicolaci da Costa and Andy Bruce); ((uk.economics@reuters.com, Tel: +44 20 7542 7748)))
