Strongest industrial output growth in four years as industry shrugs off Leave jitters to storm ahead

Fears that the economy had ground to a halt ahead of the Brexit vote were dismissed today as official data showed that industrial output grew at its strongest level for almost four years in April.

Production rose 2% in April after a 0.3% rise in March, the biggest month-on-month increase since July 2012, the Office for National Statistics said. Economists had predicted it to stagnate on the month.

Growth was driven by pharmaceuticals, which jumped 8.6%, largely on export demand, but domestic demand drove up car production, and gas and oil production rose, reflecting much colder weather.

The pound jumped half a cent on the news. Having been down at $1.4501, it showed a net rise to $1.4556. Sterling has been volatile all week, reacting to each Brexit poll.

Paul Hollingsworth, of Capital Economics, said: “It is far too soon to proclaim that the sector is out of the woods, or shrugging off Brexit uncertainty.”