INSTANT VIEW 5-UK Nov industrial output higher than expected

LONDON, Jan 13 (Reuters) - British industrial output rose slightly faster than expected in November, with a jump in oil and gas extraction outweighing a weaker-than-expected manufacturing performance, official data showed on Wednesday.



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KEY FIGURES

NOV OCT F'CAST

Manufacturing %MM UNCH UNCH 0.3

Manufacturing %YY -5.4 -7.8 -5.1

Industrial %MM +0.4 -0.1 0.3

Industrial %YY -6.0 -8.4 -6.1



KEY POINTS

- Biggest 3m/3m rise in manufacturing output since March 2008

- Biggest monthly rise in mining and quarrying since Sept 2008

- Biggest monthly rise in oil and gas extraction since Sept 2008



ANALYST REACTION

HOWARD ARCHER, GLOBAL INSIGHT

'Industrial production picked up in November, growing by 0.4 percent. Disappointingly though, manufacturing output was only flat for a second successive month with the rise in industrial production being driven by a sharp jump in oil and gas production.

'The hard manufacturing data are significantly weaker than the survey evidence from the purchasing managers, in particular, and the Confederation of British Industry. Nevertheless, it is evident that the manufacturing sector is still struggling to develop decent recovery after a largely dismal 2009.'



PHILIP SHAW, INVESTEC

'Manufacturing was a touch disappointing, particularly given the PMI for manufacturing was above 50 throughout the fourth quarter. However, the trend appears to be one of an upward grind and industrial production was a little firmer than expected.

'Overall, we're sticking to our view for positive growth in the fourth quarter, with a quarter-on-quarter expansion of around 0.4 percent.'



MARC OSTWALD, MONUMENT SECURITIES

'The headline was slightly better but that was to do with utilities, oil and gas. This does show the PMIs here overstate the momentum of the recovery. It really goes to reemphasise the point that the recovery is sluggish.'



ALAN CLARKE, BNP PARIBAS

'At face value the headline industrial production is not a bad number, but it is disconcerting that manufacturing went sideways.

'If manufacturing can't expand when there are so many favourable tailwinds -- currency weakness, end of destocking and rebounding global demand -- when can it?' Keywords: BRITAIN INDUSTRY/ ([e-mail], [phone]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.