British manufacturing rebounds in October

British manufacturing output unexpectedly surged in October by jumping a full 1 per cent from September in the biggest rise since…

British manufacturing output unexpectedly surged in October by jumping a full 1 per cent from September in the biggest rise since July last year, official data show.

The Office for National Statistics (ONS) said today the increase in manufacturing output was widespread, with the most significant rises in electrical and optical equipment and chemicals industries.

The monthly rise in output took the annual rate of increase to 2.4 per cent, the highest since July this year. The numbers will cheer analysts who had been puzzled by the weakness in official data at a time when survey evidence was pointing to a strong recovery in the hard-pressed sector.

The wider measure of industrial production, which includes North Sea oil and gas output, also posted a 1  per cent rise on the month, although that was only good enough to drag the annual rate up to 0.9 per cent.

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The ONS also released factory gate prices for November, showing a slightly improved picture for firms' margins as output prices rose 0.1 per cent on the month while the cost of raw materials was unchanged.

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