British Industrial Output Expands Most In Almost 4 Years
June 08 2016 - 2:45AM
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British industrial production logged its fastest growth in
almost four years in April largely driven by pharmaceutical
sector.
Industrial output advanced by more-than-expected 2 percent in
April from March, when it grew 0.3 percent, data published by the
Office for National Statistics revealed Wednesday.
This was the biggest monthly expansion since July 2012.
Economists had forecast a marginal 0.1 percent increase.
Growth in manufacturing output accelerated to 2.3 percent from
0.1 percent in the previous month, while it was expected to remain
flat. This was also the fastest increase since July 2012.
The main factor behind the faster growth was an 8.6 percent
increase in production of pharmaceutical products, which was the
largest gain since February 2014.
Despite the upbeat tone of April's industrial production
figures, it is far too soon to proclaim that the sector is out of
the woods, or shrugging off Brexit uncertainty, Paul Hollingsworth,
a U.K. economist at Capital Economics, said.
He said any weakness caused by referendum uncertainty increases
the scope for a rebound after June (assuming a vote to "remain"!)
but there are other factors which are likely to keep a lid on
growth.
On a yearly basis, industrial production rebounded 1.6 percent
following a 0.2 percent fall in March. A similar pace of faster
growth was last seen in October. Output was forecast to drop 0.3
percent.
Similarly, manufacturing output gained 0.8 percent, in contrast
to March's 1.9 percent decline and a 1.3 percent fall forecast by
economists. This was the first increase in production since May
2015.
In three months to April, industrial production increased 0.7
percent and manufacturing climbed 0.1 percent from the previous
three months.
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