UK industrial output highest since 2012 on surge in manufacturing

The United Kingdom’s industrial output in April jumped to its highest monthly level since 2012 as manufacturing surged rapidly during the same period.

Output rose two percent from March, when it gained 0.3 percent, figures released by the Office for National Statistics published on Wednesday showed. A Bloomberg survey of economists had predicted it to be steady. Factory production rose by 2.3 percent in April, which was also the biggest gain since July 2012.

These figures will usher in a new hope for the British economy in the second quarter, especially after industrial production shrank for two successive quarters. However, the released figures contrast with surveys showing lackluster activity as the referendum on European Union membership and ailing global growth take their toll, Bloomberg reported.

The manufacturing sector remained the main engine of growth behind the surge in industrial production and the main boost to manufacturing was provided by the pharmaceuticals sector where output rose 8.6 percent, the largest increase since February 2014 mainly due to exports. Domestic demand boosted car production. Overall, 10 out of 13 manufacturing sectors increased production in April.

There was also a 3.9 percent jump in gas and electricity production as colder temperatures increased demand for energy. Oil and gas extraction fell 1.3 percent. Industrial production rose 1.6 percent from a year earlier, while manufacturing increased 0.8 percent. In the latest three months, output climbed 0.7 percent and 0.1 percent, respectively.

Meanwhile, data released on Tuesday showed rebound in German industrial production, while in Spain it remained unchanged from the previous month.