United Kingdom: Industrial output decelerates in October
December 10, 2013
In October, industrial production rose a seasonally-adjusted 0.4% over the previous month, which was below the 0.9% increase observed in September. October's increase met market expectations.
The deceleration was observed in the majority of the components of the industrial production index. Manufacturing output expanded 0.4% over the previous month, which met market expectations and was below the 1.2% increase recorded in September. In addition, mining and quarrying fell 1.1%, which contrasted the 1.0% increase observed in the previous month. Oil and gas extracts fell 2.5% (September: +0.9% month-on-month), while water, sewage and waste industry expanded 1.5% (September: +4.6% mom). Conversely, electricity, gas, steam and air conditioning accelerated from a 0.1% increase in September to a 0.9% rise in October.
In annual terms, industrial production rose 3.2%, which was up from the 2.2% increase seen in the previous month. The figure marked the highest increase since January 2011.
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