mpc: 12 In the United Kingdom, quarterly GDP growth had been provisionally estimated by the ONS to
have slowed to 0.4% in 2004 Q3. The September Index of Production release had been provided to the
Committee ahead of publication, and it had shown a larger estimated fall in the output of the
production industries in Q3 than had been incorporated into this preliminary estimate of GDP growth.
Estimated output of the mining and quarrying sector in Q3 had declined particularly sharply from Q2.
But this appeared to have reflected a change in the timing of routine maintenance work in the oil and
gas industries and should therefore prove to be short-lived. Manufacturing output was also estimated
to have fallen. Business surveys of manufacturers and reports from the Bank's regional Agents had
also suggested weakening activity in the manufacturing sector in Q3, but they had pointed to continued
moderate expansion rather than a contraction. The Committee placed some weight on these alternative
indicators and so judged that the Index of Production release had probably somewhat overstated the
slowdown in manufacturing output growth. The ONS preliminary GDP release had estimated that
growth in the services sector had slowed a little to 0.8% in Q3, which was broadly consistent with
business surveys and reports from the Bank's Agents.
Make a comment: