British industrial output rose twice as fast as expected in May on the back of the shipbuilding industry and rising oil output, official data showed today.
The Office for National Statistics (ONS) said industrial output rose 0.6 per cent in May, its biggest jump since November. Analysts had forecast a 0.3 per cent gain.
The ONS said the recovery was aided by the completion of major shipbuilding work and rising output from the North Sea Buzzard oil field.
Manufacturing output also rose faster than expected, up 0.4 per cent on the month against forecasts for a 0.3 per cent increase.
The pound briefly rose after the data, but interest rate futures held broadly steady, already pricing in a further rise in borrowing costs before the year is out after Thursday's rise to 5.75 per cent.
Output from the manufacturing sector has now risen for three consecutive months - the longest unbroken run of gains since March to May 2004.
The figures, which were made available to Bank of England policymakers before yesterday's interest rate rise, show the manufacturing sector is holding up well in the face of a strong pound.
The manufacturing index stood at 103.1 in May, the highest since August 2001.