UK industrial production beats expectations

According to the Office for National Statistics (ONS) industrial output for February exceeded expectations. Output rose by 1% compared with January yet remained 2.2% below February 2012.

Growth in industrial production was driven by the largest rise in the production of electricity and gas since October — a trend encouraged by the recent spate of cold weather. Indeed, all the sectors that form components of industrial production – including mining and quarrying, energy supply and waste management – demonstrated signs of expansion, the first such occurrence since July 2012.

Despite these encouraging signs, is still at the same level as it was in September 2012 and the UK’s trade rose from £2.5b in January to £3.6b in February. Clearly the economy has some ground to make but a rise of 0.8% in manufacturing has waylayed fears that the UK is to enter a historic triple-dip recession for the moment.

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