United Kingdom: Industrial output drops in May
July 8, 2014
In May, industrial production fell 0.7% over the previous month in seasonally-adjusted terms, which contrasted the 0.3% rise recorded in April. May’s drop took the markets by surprise as they had expected industrial output to expand 0.3%.
Manufacturing output fell from April’s 0.3% rise to a 1.3% contraction in May. This decline also came as a surprise to the markets as they had expected production to expand 0.4%. Mining and quarrying rose 0.8% over the previous month, which contrasted the 1.1% drop recorded in April. Oil and gas output increased 0.9% in May, which also contrasted the 2.2% drop recorded in April. Conversely, electricity, gas, steam and air conditioning supply decelerated from the 4.4% rise seen in April to a 3.8% expansion. Finally, water, sewerage and waste management fell 2.6% in May, which was down from the 0.9% drop recorded in April.
In annual terms, industrial production rose 2.3% in May, which was slightly below April’s 2.9% increase. Annual average growth increased from 1.2% in April to 1.6% in May and marked the highest level since July 2011.