LONDON (Reuters) - British industrial output sank in December at the fastest pace since 2012 due to the shutdown of a major oil pipeline, but growth in manufacturing confirmed the broader picture of solid economic expansion at the end of 2017.
Construction output also showed a surprise surge in December, according to official data published on Friday.
Britain's economic growth slowed slightly in 2017 as higher inflation caused by the fall in sterling after the Brexit vote hurt consumers, although some exporters have gained from the weaker pound and the stronger euro zone economy.
Industrial output fell by 1.3 percent month-on-month in December, the biggest drop since September 2012 and compared with a 0.3 percent rise in November, the Office for National Statistics (ONS) said.
Economists taking part in a Reuters poll had expected to see output fall 0.9 percent on the month.
A shutdown in the Forties North Sea oil pipeline had been expected to drag heavily on industrial output in December, but Friday's figure showed the hit was bigger than thought.
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Nonetheless, the pipeline is back online so there should be a corresponding rebound in industrial production in January.
The ONS said Britain's manufacturing sector, which is part of overall industrial output, saw output rise by 0.3 percent on the month, marking the eighth consecutive month of growth in the sector - the longest such run in nearly 30 years.
Figures for the much bigger services sector are due to be released on Feb. 22.
Britain's economy grew at a quarterly rate of 0.5 percent in the three months to December, the fastest pace seen over 2017. The ONS said Friday's industrial and construction data did not alter this estimate.
On Thursday the Bank of England upgraded its growth forecasts for Britain on account of an improving global economy, and said interest rates are likely to rise faster and to a greater extent than it expected in November.
The buoyant world economy has been a boon in particular for British factories.
However, ONS data showed Britain's goods trade deficit with the rest of the world widened to 13.576 billion pounds in December. Economists polled by Reuters had expected a smaller shortfall of 11.6 billion pounds.
The ONS linked the large deficit to rising crude oil prices and higher imports.
Separately, the ONS said construction output jumped 1.6 percent on the month. The Reuters poll suggested construction output would be flat.
(Reporting by Andy Bruce and William Schomberg)
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