Britain’s economic outlook brightens as Brexit looms

LONDON: Britain’s industrial output grew and the trade deficit improved in December, official data showed Friday, signaling a brighter economic outlook ahead of Brexit.
The news comes as The Times newspaper reported that the government has divided British industries into high, medium and low priorities in terms of its upcoming EU exit negotiations.
Industrial output climbed 1.1 percent compared with activity in November, with particularly strong activity in the pharmaceutical and metal sectors, the Office for National Statistics (ONS) revealed in a statement. That easily outshone market expectations for a modest gain of 0.2 percent.
Britain’s trade-in-goods deficit narrowed in December to £10.9 billion from £11.6 billion in November, the ONS added.
Scott Bowman, UK economist at British-based research consultancy Capital Economics, argued the data signaled a “more balanced” economy.
“Today’s economic activity data added to other evidence suggesting that the economy maintained a significant amount of momentum at the end of 2016 and implies that gross domestic product (GDP) growth is becoming more balanced,” Bowman noted.
“The monthly 1.1 percent rise in industrial production in December was above the 0.6-percent estimate contained in the preliminary estimate of fourth-quarter GDP,” he added.
Britain’s economy grew by 0.6 percent in the final three months of last year, the ONS said last month in an initial estimate, despite the impact of the nation’s looming exit from the EU.
Prime Minister Theresa May is set to trigger Britain’s two-year divorce from the bloc by the end of March.
In a separate development on Friday, The Times newspaper published details of a leaked list that was reportedly prepared by officials and circulated in November.
The leaked list said high priority industries were aerospace, air transport, automobiles, clothing and pharmaceuticals.
Medium priority sectors included chemicals, electronics, furniture and fisheries, while low level industries included environmental services, medical, oil and gas, steel construction and water.
However, a source told The Times that the list did not reflect importance but instead indicated the amount of work needed to be done to help the sectors through Brexit.