U.K. industrial output grew more than expected in September after transport and oil output rebounded after summer slack.
Production grew 0.6 percent after declining 0.1 percent in August, reported the London-based Office for National Statistics today. Economists surveyed by Bloomberg News had expected output to increase 0.4 percent. Factory output increased 0.4 percent, also beating expectations.
Industrial output grew by a revised 0.2 percent in the third quarter, rather than the initial estimate of 0.5 percent increase. However, since factory activity contributes less than 15 percent of the total economic output, the downgrade isn’t expected to have any major impact on quarterly economic growth.
“While the expansion has slowed from the heady heights of earlier this year, the picture is one of a mild rather than sharp slowdown,” Rob Wood, a London-based economist at Berenberg Bank, told Bloomberg News. “The U.K. is so far riding out weaker growth in the euro zone relatively well.”
The pound dropped 0.1 percent to trade at $1.5963 at 10.22 a.m. in London. It has fallen 6 percent versus the dollar over the past six months.
Total production grew 1.5 percent in the year through September while factory production rose 2.9 percent. However, factory output is 9.5 percent less than the pre-recession high in the first three months of 2008. Manufacturing is still 4.1 percent less than its peak.
Natural gas and oil production boosted the growth in September, increasing 5.2 percent. Oil and natural gas production had dropped 2.5 percent in August after the Buzzard oil field was shut down for nearly four weeks. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com