United Kingdom: Industrial output contracts in August
October 9, 2013
In August, industrial production fell 1.1% over the previous month on a seasonally-adjusted basis. The reading was below the revised 0.1% increase recorded in July (previously reported: 0.0% month-on-month) and contrasted the 0.4% expansion the markets had expected.
The deterioration was mainly the result of a contraction in the manufacturing sector (July: +0.2% mom; August: -1.2% mom), which contrasted markets expectations of a 0.4% increase. In addition, a slowdown was recorded in the mining and quarrying as well as in the electricity and gas sectors.
In annual terms, industrial production fell 1.5%, which was below the 1.1% contraction recorded in July. In addition, annual average growth in industrial production remained stable at July's 2.2%.
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%, which is up 0.3 percentage points from last month's projection.
Author: Dirina Mançellari, Senior Economist