UK Industrial Output Growth Hits Six-Year High In Three Months To May

LONDON (Reuters) – British industrial output expanded at the fastest pace in six years during the three months to May, suggesting the sector was on track to contribute to economic growth before the vote to leave the EU. Industrial output rose 1.9 percent in the three months to May compared with the previous three months, the strongest increase since May 2010 and reflecting strong growth in April. In May alone, industrial output slipped 0.5 percent, a smaller decrease than the 1.0 percent drop forecast in a Reuters poll of economists. These figures are likely to be viewed mostly as moot by financial markets after Britain’s decision last month to leave the EU, which sent the currency tumbling and has raised fears the country will fall into recession or suffer years of weak growth. Still, for industrial output to drag on economic growth it in the second quarter, it would have to plummet at least 6.0 percent in June alone – something that has not happened since 1979, the ONS said. Industrial output fell 0.2 percent in the first quarter, a slightly smaller decrease than the latest economic growth figures suggested. Britain’s overall economy slowed in the first quarter, with the