Brexit slowdown fears as industrial output falls and trade deficit grows

Sharp fall in pound since EU referendum did little to boost exports in March, ONS figures suggest

Industrial output shrank more than expected and the trade deficit widened in March in the latest signs that uncertainty surrounding Brexit is beginning to weigh on the economy.

Industrial output dropped by 0.5% in March, sharper than the 0.3% fall predicted by economists. It followed a 0.7% fall in February and brought the sector to a virtual standstill in the first quarter overall, with growth of just 0.1%, according to the Office for National Statistics figures.