United Kingdom: Industrial output records flat growth in July
September 6, 2013
In July, industrial production showed flat growth over the previous month on a seasonally-adjusted basis. The figure marks a deterioration over the 1.3% expansion recorded in June and is below market expectations of a 0.2% increase.
The flat growth was largely driven by a deterioration in the manufacturing sector. Manufacturing output dropped from a 2.0% month-on-month expansion in June to a 0.2% increase in July. July's result, however, did meet market expectations.
In annual terms, industrial production decreased 1.6%, which contrasted the 1.4% expansion recorded in June. As a result, annual average growth in industrial production inched down from minus 2.1% in June to minus 2.2% in July.
FocusEconomics Consensus Forecast panelists project that industrial production will contract 0.7% in 2013, which is up 0.1 percentage points over the previous month's forecast. For 2014, the panel anticipates that growth in industrial production will rebound and expand 1.3%.
Author: Dirina Mançellari, Senior Economist