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UK factories shrug off problems

Official figures show that British factory output rose for a fourth consecutive month in June as strong demand helped manufacturers shrug off higher interest rates, rising oil prices and the strength of the pound.

June's rise marked the longest unbroken run of increases in eight years and reflects continued strength in production of capital goods.

The Office for National Statistics said manufacturing output rose by 0.2% in June, taking the annual gain to 0.9%. Both figures were in line with analysts' forecasts.

The broader measure of industrial output - which includes energy output - rose 0.1% in June, also in line with analysts' forecasts.