UK factory output beats forecasts

UK factory output grew by faster than expected in February, rising at its strongest annual rate in more than a year, official figures have shown.

Manufacturing output rose 0.4% in February, better than expectations of a 0.1% gain, said the Office for National Statistics (ONS).

The annual rate, for the year to the end of February, rose to 1.9%, the best figure since December 2006.

The figures suggest UK industry is holding up against the credit squeeze.

Food and drink

The wider industrial output figure - which also includes oil and gas production - grew by 0.3% on the month in February, and by 1.3% for the year.

These figures were also ahead of analyst forecasts.

The ONS said the increase in factory output in February was led by the food, drink, tobacco, chemical and metal sectors.

The continuing strong performance of UK manufacturers contrasts with signs that both the housing and retail markets are starting to feel the impact of the credit market turmoil and the effect this has had on consumer sentiment.

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