British manufacturing output rises in November: official

13th January 2011, Comments 0 comments

British manufacturing output rose again in November, official data showed on Thursday, stoking hopes of a strong performance in the fourth quarter.

Manufacturing output increased by 0.6 percent in November compared with activity in October, the Office for National Statistics (ONS) said in a statement.

Output climbed by 5.6 percent in November compared with the level one year earlier, the ONS added. The data beat expectations for a monthly gain of 0.5 percent and an annual increase of 5.4 percent.

Industrial production, which includes mining and quarrying, as well as electricity, gas, and water supply, rose by 0.4 percent in November and rose by 3.3 percent year-on-year.

"Today's data support the expectation that manufacturing enjoyed another firm expansion in the fourth quarter," said Barclays Capital analyst Simon Hayes.

However, he also cautioned that the country's services sector also needed to show evidence of a turnaround.

"It is, however, worth bearing in mind that manufacturing output accounts for only around 11 percent of GDP, less than 10 percent of business investment and eight percent of jobs.

"Unless the service sector starts to show a similar buoyancy -- which seems unlikely -- the outlook for overall growth in the UK economy will remain subdued."

© 2011 AFP

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