Surprise rise in UK industrial output

The UK's industrial output unexpectedly rose in April, the first month-on-month increase since February 2008, figures published today show.

In the latest indicator that the economy is starting to recover, the Office for National Statistics said industrial production rose 0.3% on the month, against analyst expectations of a 0.1% decline.

Another surprise was the rise in manufacturing output, up by 0.2%. But Howard Archer, economist at Global Insight, said manufacturers still face "serious obstacles".

He said: "Sustainable growth in the sector could remain elusive for some time to come. While leaner stocks and a competitive pound have improved their position, manufacturers are still battling against muted domestic and export demand, intensified competition and ongoing tight credit conditions. They will be hoping that sterling does not significantly extend its current rally."

Industrial production was still 12.3% lower than in April 2008.