United Kingdom: Industrial production recovers in May
July 10, 2012
In May, industrial production increased a seasonally-adjusted 1.0% over the previous month. The reading contrasted the 0.4% contraction seen in April and defied market expectations, which had industrial output falling 0.2%. The improvement was mostly underpinned by a strong rebound in manufacturing output, which swung from a 0.8% month-on-month contraction in April to a 1.2% expansion in May, beating market expectations of a 0.1% decline. Moreover, mining and quarrying output also improved markedly, recording a flat reading in May following on a 5.5% contraction in April. Compared to the same month last year, industrial output contracted 1.6%, which represents an improvement compared to the 2.0% decline seen in April. Nonetheless, the trend continued pointing downwards, with annual average growth in industrial output inching down from minus 2.0% in April to minus 2.1% in May.