United Kingdom: Industrial production rebounds in December
February 15, 2012
In December, industrial production expanded a seasonally adjusted 0.5% over the previous month, which contrasted a contraction of the same magnitude in November (previously reported: -0.6% month-on-month). Moreover, the healthy print overshot market expectations that had industrial output increasing only 0.2%. The expansion was mainly driven by a rebound in manufacturing, which swung from a 0.1% contraction in November (previously reported: -0.2% mom) to a vigorous 1.0% expansion in December. The reading was well above the 0.2% increase anticipated by the market. In addition, growth in electricity, gas and water supply jumped into positive territory for the first time in four months, while mining and quarrying declined for the second month in a row. On an annual basis, industrial production contracted 3.3% in December, which was slightly better than November's 3.6% drop. As a result, in the full year 2011 industrial output declined 1.3%, which contrasted the 1.9% expansion recorded in 2010.