The output from the UK’s heavy industries increased more than originally expected in October, fuelling theories that economic growth, which has been driven by consumer spending so far, is widening.
According to the ONS (Office for National Statistics), British industrial output increased by 0.4% in October. This growth surpassed economists’ original predictions of an increase of just 0.3% for the month. On an annual level, industrial production was in line with projected forecasts at 3.2%.
These figures indicate that British factories are starting to enjoy growth from the recent economic upturn. Manufacturing activity has increased at the sharpest rate in three years, with a surge of new orders.
In the last several years, British goods exporters have been hit hard with the slowdown in the eurozone; this growth across the board indicates a step in the right direction. Despite these positive changes, economists warn that there is still work to be done.
“A rebalancing of the UK economy is still way off. Risks to the manufacturing sector remain from falls in export demand, due to increased economic pressures in the eurozone, and the continual and persistent rise in the pound against its trade partners,” explains chief economist at foreign exchange company World First, Jeremy Cook.