United Kingdom: Industrial output rebounds in December
February 7, 2014
In December, industrial production rose 0.4% over the previous month in seasonally-adjusted terms, which marked an improvement over the revised 0.1% fall recorded in November (previously reported: flat growth). December's reading came in below the 0.6% increase that markets had expected.
The majority of the components that make up the industrial production index improved over the previous month. Manufacturing output rebounded from a 0.1% fall in November to a 0.3% increase in December, which undershot the 0.6% rise that markets had expected. In addition, mining and quarrying rose 2.9% (November: -2.1% month-on-month). Oil and gas extracts improved from a 2.9% fall in November to a 4.7% increase in December. Conversely, electricity, gas, steam and air conditioning fell 1.3% (November: +2.4% mom).
In annual terms, industrial production rose 1.8% in December, which was down from the 2.1% rise recorded in November. Annual average growth rose from minus 0.7% in November to minus 0.3% in December.
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 increase1.6%.
Author: Dirina Mançellari, Senior Economist