UK Analysis: Q3 IoP Revised Up; Will Have No Impact on GDP>

-UK Q3 IoP revised to +1.1% from +1.0% in GDP report

-UK Q3 Construction revised to -0.9% from -0.7% in GDP report

-UK Sept IoP +0.7% m/m; +2.5% y/y; Manufacturing +0.7% m/m; +2.7% y/y

-UK Sept Construction -1.6% m/m; +1.1% y/y

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - Industrial production was revised a touch higher in 

the third quarter while construction output was downgraded, implying no 

major revisions to gross domestic product from two output components of 

the economy. 

     Total production rose by 0.7% in September, outpacing the 0.3% rise 

estimated by national statisticians when compiling the first release of 

third quarter gross domestic product. 

     That takes third quarter production 1.1% above the level of the 

second quarter, topping the 1.0% rise included in the GDP report, adding 

0.1 percentage points to total growth of 0.4%. Production accounts for 

14.0% of total output after recent revisions to the National Accounts, 

down from 14.6% previously. 

     On an annual basis, production increased by 2.5% in September. 

     Output of transport equipment rose by 0.5% in the month of 

September, accounting for 0.05 percentage points of monthly growth, with 

car output rising by 0.1%. Aircraft production rise by 1.3% in 

September, providing much of the strength in the sector. 

     Over the third quarter, transport equipment jumped by 3.0%, 

accounting for 0.32 percentage points of quarterly growth, powered by a 

4.2% increase in car production. 

     Manufacturing output rose by 0.7% between August and September, 

registering a 2.7% annual gain. That leaves the manufacturing sector 

boasting a 1.1% gain over the third quarter, up from the previously 

reported 1.0% rise. 

     Meanwhile, construction output fell by 0.9% in September, slightly 

better than the 1.0% decline penciled in by national statisticians in 

deriving third quarter GDP. 

     But that still leaves the construction output nursing a 0.9% loss 

over the third quarter, worse than the 0.7% decline included in the 

first estimate of GDP. Construction now accounts for 6.1% of total 

output, up from 5.9% before the most recent update to the National 

Accounts. 

     The revisions to industrial production and construction in the 

third quarter will not exert a meaningful change to the original 

estimate of gross domestic product, according to a National Statistics 

official. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]