LONDON (Reuters) - British industrial output grew in January following a sharp fall in December, helped by a stronger than expected upturn in manufacturing, official data showed on Wednesday.
Industrial output rose by a weaker-than-expected 0.3 percent month-on-month in January after a 1.1 percent drop in December, the Office for National Statistics said. Economists polled by Reuters had expected it to rise 0.5 percent.
Output in manufacturing rose 0.7 percent on the month following a 0.3 percent dip, the first increase for four months and easily topping expectations for a 0.2 percent uptick.
The monthly Markit/CIPS survey of British manufacturers also showed the sector enjoyed an unexpectedly strong January, but it then suggested factory activity barely grew last month.
Britain has been one of the fastest-growing major advanced economies in the world for the last couple of years. But it has relied heavily on domestically focused services for growth, frustrating hopes for a better-balanced recovery.
Economic growth slowed in the second half of last year and economists say it could lose more momentum in early 2016.
Industrial output was still 10.2 percent below its peak in early 2008 during the three months to January 2016, while manufacturing output was 6.4 percent smaller.
The manufacturing sector failed to contribute to British economic growth last year.
Finance minister George Osborne has warned that the economy was facing a "dangerous cocktail" of risks from overseas in 2016, as growth slows in major emerging markets, stock markets tumble and oil prices slump amid fading global demand.
Economists say that the Britain's planned referendum on its European Union membership could also drag on growth.
North Sea oil and gas extraction fell 6.3 percent on the month, the biggest drop since June 2014, which the ONS said could be linked to bad weather.
Brent crude oil prices slid almost 7 percent in January following a 35 percent drop for 2015 as a whole.
Compared with a year ago, industrial output was 0.2 percent higher in January.