United Kingdom: Industrial output contracts in August
October 9, 2012
In August, industrial production decreased a seasonally-adjusted 0.5% over the previous month. The figure contrasted the revised 2.8% expansion seen in July (previously reported: +2.9% month-on-month) but was in line with market expectations. The deterioration was broad-based, with the three major categories performing worse compared to the preceding month. In particular, manufacturing output surprised the market on the downside by recording a 1.1% contraction over the previous month (July: +3.1% mom), which was below analysts' expectations of a 0.7% decline. In annual terms, industrial output decreased 1.2%, which came in below the 0.8% contraction observed in July. Despite the subdued figure, the trend remains stable, with annual average growth in industrial output remaining unchanged at July's minus 2.3%.