UK data shows Brexit effect

Signs that Britain’s economy is slowing as it prepares to leave the EU hardened yesterday, as official data showed a surprise drop in industrial output and construction in February, and a mixed performance for trade.

Sterling slid to a one-week low against the dollar after industrial output dipped 0.7% in February, worse than all forecasts in a Reuters poll of economists, which had pointed to a 0.2% increase. Output fell 0.3% in January.

A surprisingly large goods trade deficit — albeit distorted by imports of high-value goods like gold and aircraft — and a slump in construction added to evidence that Britain’s economic growth rate peaked toward the end of last year.