UK industrial production beats expectations in October but manufacturing still drags

Jessica Morris
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Nissan's Car Manufacturing Plant In Sunderland
Manufacturing was down 0.4 per cent on the month (Source: Getty)
K industrial production grew 1.7 per cent in the year to October, beating economists' forecasts for 1.2 per cent growth, and painting a positive picture for the sector, new data from the Office for National Statistics shows.

Mining and quarrying rose 8.5 per cent, followed by water supply, sewerage and waste management output, which rose four per cent and then electricity, gas, steam and air conditioning output, which swelled 3.6 per cent.

However, the gains were tempered by manufacturing output, which slumped by 0.4 per cent month-on-month and 0.1 per cent on the year.

"October's renewed dip in manufacturing output is a blow to hopes that the sector could be gradually turning around after a torrid 2015," Howard Archer, chief economist at IHS, said.

"The manufacturing sector may still be able to eke out marginal growth in the fourth quarter, but it now looks doubtful it will be able to do any more than that. It contracted in each of the first three quarters of 2015.

"What is clear is that fourth-quarter gross domestic product growth is once again going to be highly dependent on the services sector."