United Kingdom: Industrial production contracts for third straight month
December 7, 2012
In October, industrial output decreased a seasonally adjusted 0.8% over the previous month. The decline was smaller than the 2.1% contraction seen in September but contrasted market expectations that had industrial production expanding 0.8%.
A decline in the manufacturing sector was the main driver behind the monthly contraction. Manufacturing production dropped a seasonally adjusted 1.3% over the previous month, which contrasted the flat reading observed in September and surprised the market on the downside, as analysts expected a weaker 0.2% drop. Furthermore, output in mining and quarrying failed to recover from the 23.7% contraction recorded in September and decreased 4.4% in October.
In annual terms, industrial output stepped up from a 3.2% contraction in September to a 3.0% drop in October. Nonetheless, the trend continues pointing downwards, with annual average growth in industrial output edging down from minus 2.5% in September to minus 2.6% in October.