The month of July witnessed strengthening of U. K. manufacturing output to its strongest level of growth in more than three years, the credit of which goes to the rising auto production. Apart from this, even the monthly industrial production beat the expectations, reflecting that the U. K. economy has seen the worst of the recession.

As suggested by the Office for National Statistics (ONS) Tuesday, a rise by 0.9% was seen in manufacturing output from the previous month in July. The output plunged
10.1% on a yearly basis. "That beat analyst predictions of a 0.4% monthly gain and a 9.9% annual drop, marking the strongest month-to-month rise since May 2006," the report added.

After the results for June were revised, a monthly rise of 0.6% was seen, along with an 11.3% yearly fall.

A hike by 0.5% was seen in the wider measure of industrial production from the earlier month, emphasizing the first consecutive monthly rise since September 2006, and plunged 9.3% in annual terms. A 0.4% monthly rise and an 11% annual drop had been predicted by the economists.

Apart from this, June's figures were also revised to display a 0.6% monthly gain and 11.3% annualized fall in output.

The ONS said: "The breakdown of the data showed that the rise was prompted largely by auto production, which rose 10.4% from the previous month. Eight of the 13 sub-sectors posted a rise."