–Strong data imply upward revision to Q1 GDP of 0.1pp
–Anecdotal evidence weaker Sterling boosting manufacturing output
–Mar manufacturing output +2.3% m/m; +3.3% y/y
–Mar industrial production +1% m/m; -0.1% y/y

LONDON (MNI) – Manufacturing output rose at its fastest monthly
rate for eight years in March, helped by the recent weakness of
Sterling, according to figures released by National Statistics Tuesday.

The strength of the data implies that GDP in the first quarter of
this year will be revised up by 0.1 percentage point from an initially
estimated 0.2% quarterly increase.

Manufacturing output rocketed 2.3% on the month in March to stand
3.3% above levels a year earlier. The monthly rise was the highest since
July 2002 while the yearly increase was the largest since October 2006.

National Statistics said that the rise in output was widespread
across most industrial sectors with 12 of the 13 manufacturing
sub-sectors posting gains.

The largest increase was seen in the basic metals and metal
products category which saw output rise 3.9% on the month. Paper,
printing and publishing increased 2.7%, while machinery and equipment
were up 4.21%.

National Statistics said that there was anecdotal evidence that the
recent weakness in the currency had helped to boost exports,
particularly in the transport and metals sectors.

The strength in the manufacturing sector will be welcomed by the
Bank of England which has long argued that the UK economy needs to
rebalance away from the consumer led growth seen in the past.

The rise in manufacturing was far higher than all forecasts of City
analysts in a Market News survey which had shown a median of 0.4% on the
month and 1.6% on the year.

During the first quarter, manufacturing output was estimated to
have risen 1.2% compared with Q4, the highest since March 2006.

The wider measure of industrial production rose 2% on the month and
was up 2% on the year. This was the highest monthly increase since July
2002 and the largest annual gain since March 2004.

Electricity, gas and water supply output fell 0.9% on the month
while mining and quarrying was up 2.2%, as oil and gas output increased
2.4%.

In the first quarter, industrial production rose by 1.2%, the
largest rise since March 2006.

–London newsroom 4420 7634 1624 email: drobinson@marketnews.com

[TOPICS: MABDA$,M$B$$$,MT$$$$,MABDS$]