UK Dec manufacturing rebounds faster than expected

British manufacturing output rose more than expected in December after strong gains in the transport, paper and publishing and electrical and optical equipment sectors, official data showed on Wednesday.

The Office for National Statistics said manufacturing grew by 0.9 percent in December from an upwardly revised 0.2 percent in November, three times faster than economists had forecast.

The broader measure of industrial production also rose by slightly more than expected, growing by 0.5 percent on the month, its fastest pace since September 2009 but limited by a 5.5 percent drop in oil and gas production.

Year-on-year, manufacturing was down 1.9 percent in December and industrial production was 3.6 percent lower.

"These are robust numbers, and about time too," said Alan Clarke, economist at BNP Paribas. "While encouraging, we really need to see several more months of solid gains to be sure the sector is recovering."

Market reaction was limited, with most investors on hold ahead of the Bank of England's quarterly Inflation Report at 1030 GMT.

On the quarter, manufacturing rose 0.8 percent and industrial output overall rose 0.4 percent — compared with estimates of 0.4 percent and 0.1 percent respectively in the ONS's initial estimate of fourth quarter GDP last month.

The ONS said Wednesday's data implied an upward revision of less than 0.1 percentage points to the GDP estimate, other things being equal.

The quarterly rise in manufacturing output was the largest since March 2006, while the industrial output gain on the quarter was the highest since December 2007.