United Kingdom: Industrial production dips in April
June 10, 2011
In April, industrial production declined a seasonally adjusted 1.7% over the previous month. The fall contrasted the 0.2% increase tallied in March and fell short of market expectations that had production remaining flat in April. In annual terms, industrial output dropped 1.2%, down from the 0.1% year-on-year increase observed in March. Lower industrial output in April was affected by extra public holidays related to the Royal Wedding and supply chain disruptions triggered by the Japanese earthquake, which resulted in manufacturing production declining 1.5% in April (March: +0.2% month-on-month). The result defied market expectations of a more moderate 0.1% decline. Moreover, electricity, gas and water supply output contracted 4.9% over the previous month (March: +0.6% mom) due to reduced demand for electricity during the month of April, the warmest on record. Owing to the decline in output, the trend continued on its downward trajectory, with average growth in industrial production falling from 2.5% in March to 2.3% in April.