LONDON, Nov 5 (Reuters) - British manufacturing output rose

faster than expected in September, and at its fastest monthly

pace since July 2002, rebounding from August's sharp drop,

official data showed on Thursday.

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KEY FIGURES

SEPT AUG F'CAST

Manufacturing %MM 1.7 -2.0 1.0

Manufacturing %YY -9.3 -11.6 -9.7

Industrial %MM 1.6 -2.6 1.0

Industrial %YY -10.3 -11.5 -10.5

KEY POINTS

- Biggest monthly rise in manufacturing output since July

2002

- Biggest monthly rise in industrial output since July 2002

- The ONS said that quarterly 0.8 percent fall in industrial

output would not materially affect the GDP estimate for the

quarter, all other things being equal. Preliminary GDP data last

month showed that industrial output had fallen 0.7 percent over

the quarter.

ANALYST REACTION

PHILIP SHAW, CHIEF ECONOMIST, INVESTEC

'The rebound on the month in both manufacturing and

industrial output was stronger than expected, but downward

revisions to July and August mean that industrial production as

a whole contracted at a slightly quicker rate in Q3 than

initially estimated.'

STEPHEN LEWIS, CHIEF ECONOMIST, MONUMENT SECURITIES

'Looking at the longer term trends they are broadly in line

with expectations. But I don't think that's going to be make a

material difference to the GDP revision.

'Things have been very erratic and it's hard to say whether

this represents the beginning of a bounce back. The year-on-year

comparisons, of course, will improve because of base effects.'

ALAN CLARKE, UK ECONOMIST, BNP PARIBAS

'We had factory shutdowns in August and we've had a bounce

back from that. The fact that factories saw fit to have an

extended summer shutdown shows the sector is still fragile. So

it is recovering but it is still far from full fitness.'

Keywords: BRITAIN MANUFACTURING/ LOOK

(uk.economics@reuters.com, +44 20 7542-2774)

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