LONDON (Reuters UK) - The top share index pared losses and gilt futures slipped on Thursday after data showed British manufacturing output rose faster than expected in September, lifting optimism on the economic outlook.
The Office for National Statistics said that factory output rose by 1.7 percent in September, increasing from a 2.0 percent decline in August, much better than economists' forecasts.
By 9:46 a.m., the FTSE 100 was down 0.5 percent at 5,082.69, after trading at 5,055.49 before the release of the manufacturing data.
The December gilt future slipped 4 ticks to 117.26, having been at 117.30 ahead of the data.
Sterling traded at $1.6520, slightly lower than $1.6540 before the figures, while the euro rose to 89.89 pence, approaching the day's high. Before the announcement, it hovered around 89.70 pence.
(Reporting by London markets team)
