Manufacturing rising out of winter of slump

Britain’s manufacturing output bounced back strongly in March as it recovered from a winter slump.

The Office for National Statistics said output rose 0.9 per cent in March, well ahead of most economists’ expectations. But the performance across the first quarter of 2012 was still 0.8 per cent lower than a year ago due to a 1.1 per cent slump in February.

The third-warmest March on record depressed demand in the energy sector, pushing Britain’s overall industrial output down 0.3 per cent in the month.

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Yesterday’s figures lent support to the Bank of England’s decision to stop the money presses, as its monetary policy committee came down in favour of tackling inflation rather than trying to boost the economy with a further injection of cash.

Details of how members voted will give a clue as to the chances of further quantitative easing when they are released later this month.