United Kingdom: Industrial output expands more than expected in June
August 6, 2013
In June, industrial production expanded 1.1% over the previous month on a seasonally adjusted basis. The figure follows three consecutive flat readings and marks the strongest expansion since July of last year. Moreover, the result came in above market expectations of a 0.6% increase.
The improvement was largely driven by the manufacturing sector. Manufacturing output rebounded from a 0.7% month-on-month contraction in May to a 1.9% expansion in June, which was larger than the 0.7% rise the markets had expected.
In annual terms, industrial production rose 1.2%, which contrasted the 2.3% contraction recorded in May and marked the first expansion after 27 consecutive periods of decline. As a result, annual average growth in industrial production rose from minus 2.6% in May to minus 2.1% in June.
FocusEconomics Consensus Forecast panellists project industrial production to contract 0.7% in 2013, which is up 0.1 percentage points over the previous month's forecast. For 2014, the panel anticipates growth in industrial production to rebound and expand 1.3%.
Author: Armando Ciccarelli, Head of Data Solutions