OUTPUT in Britain’s construction and manufacturing industries remained under pressure in February and the trade gap widened, according to a new report.

Latest figures from the Office for National Statistics (ONS) showed construction output came in shy of expectations, falling by 1.7 per cent in February, down from a revised reading of zero per cent in January.

Industrial production output also fell short of economists’ predictions, recording a monthly drop of 0.7 per cent compared to a decline of 0.3 per cent the month before.

The move was largely caused by a fall in electricity and gas demand driven by unseasonably warm weather, while manufacturing also eased back by 0.1 per cent in February compared to a contraction of one per cent in January.

Britain’s deficit in goods and services, the gap between exports and imports, expanded by £700m on the month to £3.7bn in February.

The increase was triggered by a jump in imports of non-monetary gold and aircraft, with total exports falling by £400m and total imports rising by £300m.

Stripping out erratic items such as ships, silver, aircraft and precious stones, the ONS said the trade deficit shrunk to £2.5bn in February, from £3bn the month before.

Kate Davies, ONS senior statistician, said: “While manufacturing was broadly flat in February, unseasonably warm weather reduced gas and electricity use, pulling down overall production.

“The overall trade deficit worsened, but excluding erratic items the picture improved, as imports fell more than exports.

“There were small falls across a range of construction sub-sectors for the second month running, following a record performance for the industry at the end of 2016."

The construction industry was dragged down in February by a 7.3 per cent month-on-month slide in infrastructure work, while new housing also fell by 2.6 per cent over the period.

Despite monthly falls, the construction and manufacturing industries saw a more positive picture over the three months to February.

Construction output grew for the fourth three-month period on the bounce, increasing by 1.5 per cent, while manufacturing increased by 2.1 per cent.