Machinery surge powers rally despite a struggle for industry

Manufacturers enjoyed their best month since before the referendum in September, official figures showed today, even though the UK’s wider industrial sector struggled.

A surge in repairing and installing machinery helped lift output 0.6%, the best month since April and beating City expectations.

The performance was the highlight of an otherwise weak month in which warm weather and North Sea maintenance hit oil and gas production, leaving overall industrial production 0.4% down.

Experts said the data were in line with the broad picture of economic resilience since the vote to leave the EU, helped by the fall in sterling.

Ruth Gregory at Capital Economics said: “The fall in the pound appears to be performing its role as a ‘shock absorber’ in the wake of the Brexit vote, by improving the competitiveness of domestic producers.”