Mixed UK output but trade deficit narrows

UK industrial output increased for fourth months in a row in the 12 months to September, beating economic forecasts. A rise of 2.5% was seen which is the greatest year-on-year increase since February. At the same time, Britain's trade deficit with the rest of the world has narrowed for the second month in a row as demand increases for goods exported, closing the gap by £700m to £2.75bn. Construction, on the other hand, has fallen for the second quarter in a row to the end of September, and stood at a 1% increase year-on-year which was below the lowest forecasts. The news is keeping the pound relatively steady, though the FTSE All Share has declined despite the relatively positive economic results. UK bonds are being sold, however, which has pushed the yield on the UK 10-year Gilt to its highest level in over a week as markets seek to take more risk