United Kingdom: Industrial production falters in January
March 9, 2012
In January, industrial output contracted 0.4% over the previous month in seasonally adjusted terms. The reading contrasted both the revised 0.4% increase seen in December (previously reported: +0.5% month-on-month) and market expectations, which had industrial production rising 0.3%. The monthly decline was the result of a deceleration in the manufacturing sector, which stepped down from a robust 1.1% month-on-month rise in December to a paltry 0.1% increase in January, along with a contraction in mining and quarrying as well as in electricity, gas steam and water supply. Compared to the same month last year, industrial production contracted 3.8%, which was below the 3.1% decline seen in December and marked, in fact, the worst contraction since November 2009. As a result, annual average growth in industrial output dropped from minus 1.2% in December to minus 1.8%.