“U.K. manufacturing production had its biggest monthly increase in December for five months, boosted by output of machinery and equipment and chemical products.
Factory output rose 1.6 percent from November, when it fell 0.3 percent, the Office for National Statistics said today in London. The increase was double the median forecast in a Bloomberg News survey. Total industrial production rose 1.1 percent, helped by a 3.2 percent increase in oil and gas production.
The figures suggest manufacturing gained momentum heading into the new year, easing concerns that Britain may slip back into a recession. With a survey of purchasing managers showing manufacturing activity expanded for a second month in January, the Bank of England today refrained from increasing stimulus as officials monitor inflation pressures in the economy.
“With more North Sea oil and gas production set to come on stream over the next couple of months, we anticipate another decent figure next month,” said James Knightley, an economist at ING Bank NV in London. “Furthermore, with the PMI for January also showing growth, this offers further indication that the U.K. will probably avoid the fate of dipping into recession three times in the space of five years.”
