UK June industrial output rises at fastest since Oct ’07

British industrial output rose unexpectedly in June and at its fastest pace since October 2007, helped by a surge in car production, official data showed on Wednesday.

The Office for National Statistics said industrial production rose 0.5 percent on the month in June after a 0.7 percent drop in May and well above analysts' forecasts for no growth.

Industrial ouput remains some 11.1 percent below last year's levels.

The ONS said the monthly rise would not be enough to materially alter Britain's second quarter GDP data, which came in worse than expected last month with a fall of 0.8 percent on the quarter.

However, the stronger figures may encourage some investors to bet that the Bank of England will refrain from expanding its 125 billion pound asset purchase programme on Thursday.

Manufacturing output also rose unexpectedly in June, up 0.4 percent on the month, against market forecasts for a 0.1 percent fall — the strongest rise since January 2008.

Within that, motor vehicle production surged 13.5 percent on the month — its biggest rise since January 2007. However, production in the three months to June was still 42.8 percent lower than the same period a year ago.