Pace of manufacturing recovery surprises City

Pace of manufacturing recovery surprises City

Output from Britain's factories continued to recover in August, the fourth straight month of expansion. The Office for National Statistics said it rose 0.4% from July, double City expectations, to stand 1.5% higher than a year ago. Manufacturing accounts for only 15% of the British economy. There was a significant increase in electrical and optical equipment. Economists said the data would make little difference to the Bank of England's interest rate deliberations next month. "Industrial production is likely to boost quarterly growth in the third quarter by just 0.1%," said John Butler at HSBC.

Guardian Unlimited © Guardian Newspapers Limited 2006

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