UK industrial output drops in Oct., manufacturing up

UK industrial production dropped unexpectedly in October, but manufacturing output rose during the month, boosted by machinery and equipment industries, the Office for National Statistics said.

Total production output dropped 0.2 percent sequentially. Economists were expecting a drop of 0.3 percent.

The steepest declines were seen in mining and quarrying output, as well as oil and gas production at 4.2 percent. Compared to last year, mining and quarrying was down 7.2 percent.

However, total manufacturing output rose 0.6 percent sequentially and 5.8 percent from last year, while economists were expecting a rise of 0.3 percent.

The latest official UK manufacturing data echo the recent industrial surveys in suggesting that the recovery in the industrial sector is picking up pace again, Vicky Redwood, an economist at Capital Economics, said in a note.

The transport equipment industry saw a rise of 2.6 percent, while machinery and equipment industries rose 2.5 percent. Some of these gains were offset by a 1.1 percent drop in the food, drink and tobacco industries.

It looks like industry is in a good position to help to offset some of the effects of the looming squeeze currently but the sector isn't big enough on its own to keep the recovery going as the public and consumer sectors retrench, Redwood added.