United Kingdom industrial production was surprisingly strong in September

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"Stronger global growth and the effect of the weaker pound seems to be finally showing through in the United Kingdom manufacturing numbers", said ING economist James Smith.

Industrial production measured in terms of the Index of Industrial Production (IIP) had grown by 4.5 per cent in August 2017 and 5 per cent in September 2016.

Industrial production climbed a working-day-adjusted 4.7 percent year-over-year in September, slower than the 6.2 percent spike in the previous month.

Year-on-year, construction output rose 1.1%, short of the 2.2% forecast and down from a revised 3.9% rise for August.

Despite the positive news on industrial production and trade, a separate release from the ONS suggested the construction sector had a torrid September, with output contracting 1.6 per cent.

Britain's industrial output grew at its fastest pace this year in September, according to official figures, owing to growing machinery and equipment output.

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IIP is compiled using data received from 14 source agencies: Department of Industrial Policy and Promotion (DIPP), Indian Bureau of Mines, Central Electricity Authority, Joint Plant Committee, Ministry of Steel, Ministry of Petroleum and Natural Gas, Office of Textile Commissioner, Department of Chemicals and Petrochemicals, Directorate of Sugar and Vegetable Oils, Department of Fertilizers, Tea Board, Office of Jute Commissioner, Office of Coal Controller, Railway Board, and Coffee Board. The growth was the fastest since February, when production increased 2.9%.

Some important items showing high positive growth during the current month over the same month in previous year include "separators including decanter centrifuge" (117.4%), "bodies of trucks, lorries and trailers" (94.5%), and steroids and hormonal preparations (including anti-fungal preparations). Economists had expected a shortfall of GBP 12.80 billion.

The visible trade deficit narrowed to GBP 11.25 billion in September from GBP 12.35 billion in the previous month.

Separate data from the ONS showed that construction output decreased 1.6% month-on-month in September, amid declines in both fix and maintenance as well as all new work.

Consequently, the estimate for the third quarter sequential decline in construction output was revised down to 0.9% from 0.7%. "So we remain optimistic that net trade will provide more support to growth in the quarters ahead".