(RTTNews) - Despite UK’s industrial output rising in September, the country’s current recovery remains very fragile, BNP Paribas said in a research note.

Industrial output rose 1.6% month-on-month in September, after a 2.6% fall in August. Manufacturing output grew 1.7%, while mining output was up 7.6%. Automobile production rose 5.3%, and automobile parts grew 10%.

However, industrial output fell 0.8% sequentially in the third quarter, for the seventh consecutive quarter. During the same period, manufacturing output was almost flat, down by just 0.1%, BNP Paribas said.

Philippe d’Arvisenet, chief economist at BNP Paribas said several surveys including the CBI industry survey and the reports from Bank of England all confirmed that the recovery remained fragile. The regional agents of the BoE noted that the economy’s output seemed to have bottomed out through the summer, although activity remained well down relative to a year earlier, BNP Paribas said. Prospects were improving very gradually, it added.

BNP Paribas said Thursday’s industrial production report signaled that recovery in the UK is likely to take a long time, before GDP came back to levels reached before the crisis.

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Posted in Categories: Economy, Releases, UK.

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