U.K. industrial production rose more than economists forecast in April as oil and gas output surged. Manufacturing unexpectedly contracted amid a decline in pharmaceuticals.
Total production increased 0.4 percent from March, the Office for National Statistics said in London on Wednesday. Economists in a Bloomberg survey had forecast a 0.1 percent gain. Oil and gas extraction jumped 8.7 percent, the biggest increase in more than a year. Factory output fell 0.4 percent. A 0.1 percent increase was forecast.
The fall in manufacturing highlights Britain’s reliance on domestic demand and consumption to fuel its recovery. Data Tuesday showed that exports are likely to continue dragging on growth.
Pharmaceuticals output, which accounts for almost 9 percent of manufacturing, fell 6 percent in April following a 6.8 percent increase the previous month. Seven of 13 manufacturing sectors posted declines.
In the first quarter, industrial output rose 0.2 percent instead of the 0.1 percent previously estimated. The impact on gross domestic product is less than 0.05 percentage point, the ONS said.
Oil production rose in April as several North Sea fields returned to full capacity. The pound was trading at $1.5437 as of 9:35 a.m. in London, up 0.4 percent on the day.
