United Kingdom: Industrial production rises in March
May 10, 2019
Industrial production rose 0.7% in March over the prior month according to the Office for National Statistics, following February’s 0.6% increase. March’s figure was driven by expansions in the manufacturing; and mining and quarrying subsectors, while the electricity, gas, steam and air conditioning; and water supply subsectors contracted over the previous month.
However, the strong showing from manufacturing was likely driven in part by firms stockpiling in preparation for a no-deal Brexit. This dynamic will likely reverse over the next few months, which could suppress industrial production readings. Industrial production increased 1.3% in annual terms in March, up from February’s 0.4% rise.
UK Industrial Production Forecast
FocusEconomics Consensus Forecast panelists see the industrial sector performing fairly poorly going forward, and project that industrial production will increase 0.3% in 2019 and 0.8% in 2020.
Author: Oliver Reynolds, Economist