United Kingdom: Industrial output rebounds vigorously in July
September 7, 2012
In July, industrial output soared a seasonally-adjusted 2.9% over the previous month. The reading benefitted from a favourable base effect, as in the preceding month, industrial production had plummeted a revised 2.4% (previously reported: -2.5% month-on-month) amid an additional number of holidays in June. That said, the reading represents the fastest pace of expansion in 25 years and surprised the market on the upside, as analysts expected industrial output to grow 1.5%. The improvement was broad-based, with most categories expanding over the previous month. In particular, manufacturing production increased 3.2%, which contrasted the 2.9% contraction seen in June. The robust figure marked the strongest increase since July 2002 and also overshot market expectations that had factory output rising 1.8%. Compared to the same month last year, industrial output contracted 0.8%, which, nevertheless, represents an improvement over the 3.8% decline recorded in June. In addition, the trend finally halted its downward trend, with annual average growth in industrial output edging up from minus 2.4% in June to minus 2.3% in July.