United Kingdom: Industrial output growth slows in January
March 11, 2014
In January, industrial production rose 0.1% over the previous month in seasonally-adjusted terms, which came in below the revised 0.5% increase recorded in December (previously reported: +0.4% month-on-month). January's mild increase came in slightly below the 0.2% expansion that markets had expected. Manufacturing output growth was stable at December's 0.4% in January, which slightly overshot the 0.3% rise that market had expected. Mining and quarrying swung from a 3.3% increase in December to a 3.4% fall in January. In addition, oil and gas output fell 5.8% in January affected by bad weather conditions, which contrasted the 4.9% increase recorded in December. Conversely, electricity, gas, steam and air conditioning supply rebounded from a 1.2% decrease in December to a 0.8% increase in January. In annual terms, industrial production rose 2.9% in January, which was an improvement over the 1.9% increase recorded in December. Annual average growth swung from minus 0.3% in December to plus 0.2% in January. FocusEconomics Consensus Forecast panelists project that industrial production will increase 2.0% in 2014, which is up 0.3 percentage points over the previous month's forecast. For 2015, the panel expects that industrial production will increase 1.6%.
Author: Dirina Mançellari, Senior Economist