UK industrial production unexpectedly drops in August

UK industrial production unexpectedly declined in August, while manufacturing production rose less than expected, according to data from the Office for National Statistics.

Industrial production fell 0.4% on the month versus expectations of a 0.1% increase. The ONS highlighted drops in two of the four main sectors, with the largest contribution from mining and quarrying, which slid 3.7%.

On the year, it rose 0.7%, which was less than the 1.3% jump forecast. There were increases in two of the four main sectors, with the biggest contribution coming from water supply, sewerage and waste management output, which was up 7%.

Meanwhile, manufacturing production was up 0.2% on the month compared to expectations of a 0.4% increase. It rose 0.5% on the year, missing expectations of a 0.8% gain. Other manufacturing and repair were the biggest contributors to growth, up 5.9%.

ONS senior statistician Kate Davies said: “Manufacturing output was up slightly in August with more cars built, with limited evidence suggesting the lower pound boosted exports.

“Nevertheless, this was offset by a fall in oil and gas production, with some field shutdowns contributing to the fall, meaning UK production as a whole was down.”