British industrial output grew more strongly than expected in September as it bounced back from a fall the previous month, providing some reassurance that the country’s economic recovery is not being driven only by consumption.
Output in the industrial sector – which makes up about a sixth of Britain’s economy – climbed 0.9 percent during the month and was pushed up most strongly by manufacturing, the Office for National Statistics said.
Economists had expected a rise of 0.5 percent, according to a Reuters poll of economists.
Sterling jumped to a one-week high against the dollar and British government bond prices fell as investors took the data as another sign that the Bank of England might bring forward its timeframe for raising interest rates.
But economists cautioned against reading too much into Wednesday’s figures and Britain’s economy was still being driven by consumption and the services sector.
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