UK engine output slipped 0.9% to 1.3m units in the first half of 2014, the Society of Motor Manufacturers and Traders said.
June volume fell 0.4% to 224,792.
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Exports continued to improve in both June and the first half, accounting for 65% of H1 output.
UK engine production is expected to improve as new facilities come online (Jaguar’s Wolverhampton plant) and the European market continues to recover, the SMMT said.