British Manufacturing Output Rises in November

Jan. 13, 2011
Output increased 0.6%

Manufacturing output increased by 0.6% in November compared with activity in October, the Office for National Statistics (ONS) said on Jan. 13. in a statement.

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

Industrial production, which includes mining and quarrying, as well as electricity, gas, and water supply, rose by 0.4% in November and rose by 3.3% 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% of GDP, less than 10% of business investment and 8% 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."

Copyright Agence France-Presse, 2011

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