Industry in biggest leap for 25 years

Britain's industrial sector roared back from a Jubilee slump with the biggest surge for 25 years in July, but inflation fears are rising.

The Office for National Statistics yesterday said industrial output jumped 2.9 per cent over the month, the biggest leap since 1987 and twice as fast as expected, after losing 2.4 per cent in a June hit by two extra days off.

Manufacturers' output rose 3.2 per cent in July. Analysts said the holidays had been the dominant factor. A big rise in petrol costs, up 3.2 per cent over the month, pushed factory gate prices 0.5 per cent higher during August. Inflation reached 2.6 per cent in July.