United Kingdom: Industrial production rebounds
July 7, 2011
In May, industrial production increased a seasonally adjusted 0.9% over the previous month, contrasting the 1.7% fall observed in April and virtually matched market expectations that had production rising 1.0%. In annual terms, industrial output dropped 0.8% over the same month last year (April: -1.2% year-on-year). A rebound in industrial output in May was due to a base effect, as in April production was affected by extra public holidays related to the Royal Wedding as well as supply chain disruptions caused by the Japanese earthquake. As a result, manufacturing production added 1.8% in May (April: -1.6% mom) and came in well above market expectations of a more moderate 1.0% rise. Despite the rebound in output, the trend continued on its downward trajectory, with average growth in industrial production falling from 2.3% in April to 2.0% in May.