United Kingdom: Industry contracts again in July
September 9, 2015
In July, industrial production fell 0.4% in seasonally-adjusted terms over the previous month, which was in line with the 0.4% drop recorded in June. July’s figure contrasted the 1.4% increase expected by the markets. Manufacturing dropped 0.8% in July, which contrasted the 0.2% increase seen in June and marked the steepest decrease in six months. Conversely, electricity, gas and steam expanded 1.3%, which contrasted the 0.3% decrease seen in June. In addition, mining and quarrying improved and grew 0.4% (June: -3.8% year-on-year).
In annual terms, industrial production expanded 0.8%, which was down from the 1.5% increase recorded in June and marked the lowest reading in 5 months. Moreover, annual average growth in industrial production slowed from 1.3% in June to 1.2% in July.
Author: Dirina Mançellari, Senior Economist