Instant View -UK November industrial output weaker than expected

LONDON Fri Jan 11, 2013 9:59am GMT

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LONDON (Reuters) - British industrial output grew less than expected in November, despite a strong rebound in oil and gas production due to the restarting of the Britain's largest oil field.

REACTIONS

BRIAN HILLIARD, ECONOMIST, SOCIETE GENERALE:

"This is a disappointing manufacturing figure, but offset a little bit by the eventual recovery in oil and gas output. It is that industrial production number that is going to feed through into GDP figures.

"The feared loss of momentum in manufacturing output is being confirmed by these data."

MIKE RIGBY, HEAD OF MANUFACTURING, BARCLAYS:

"With austerity and inflation going nowhere, the outlook for manufacturers is subdued. However, there may be some respite with encouraging economic signs from abroad, particularly if recent reports that the euro zone woes may be bottoming out are correct."

PHILIP SHAW, ECONOMIST, INVESTEC:

"It's a disappointing set of data, we had thought that we might see a bounceback in manufacturing output over the month but what we saw instead was a further contraction.

"Most of the official data are suggesting weakness over the fourth quarter but it's possible that we actually see a rebound in construction output despite the weak-looking headlines on November's data. So Q4 GDP may still be positive."

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KEY FIGURES FOR NOVEMBER INDUSTRIAL PRODUCTION

MANUFACTURING OUTPUT NOV OCT (PREV OCT) F'CAST

Mth-on-mth change -0.3 -1.3 (-1.3) 0.5

Yr-on-yr change -2.1 -2.0 (-2.1) -1.3

INDUSTRIAL PRODUCTION

Mth-on-mth change 0.3 -0.9 (-0.8) 0.8

Yr-on-yr change -2.4 -3.0 (-3.0) -1.9

KEY POINTS

- Biggest annual fall in factory output since June 2012

- Biggest monthly rise in industrial output since July 2012

- Biggest 3m/3m fall in industrial output since April 2009

- Biggest monthly rise in oil and gas extraction since January 1968

(Reporting by UK bureau)

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