UK manufacturers ended 2016 strongly

Output from the sector grew by 2.1% in December and was up 1.2% in the fourth quarter, according to new ONS figures.

The manufacturing sector grew faster than expected at the end of 2016 as the UK economy continued to defy concerns of a downturn following the Brexit vote, new statistics have revealed.

The Office for National Statistics (ONS) statistics revealed that output from the sector grew by 2.1% in December and was up 1.2% in the fourth quarter.

The largest contribution came from pharmaceuticals, which showed month on previous month growth of 8.3%, followed by metal products at 4.5%, and the computer, electronic and optical sector at 3.7%. However, the ONS warned that the pharmaceuticals sector can be highly erratic.

The ONS figures showed the wider measure of industrial output ­- which includes factories, oilfields and chemical plants - rose by a better-than-expected 1.1% in December, although it was up by just 0.3% in the final quarter of the year.

Again, the largest contribution came from pharmaceuticals, which showed three-month on previous three-month growth of 9.8%. This was followed by electrical equipment at 4.6% and coke and petroleum at 3.9%.

However, the mining and quarrying sector, which includes North Sea oil and is the second-biggest part of British industry, contracted by 1.1 %.

The construction sector also enjoyed a strong December, the ONS figures suggest, with output rising by 1.8%, mainly due to an increase in the building of houses and commercial properties.