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- UK industrial production fell sharply in March, but less than expected
UK industrial production fell sharply in March, but less than expected
Office for National Statistics said that production output fell by 4.2% between February 2020 and March 2020. Economists had expected a 5.6% decrease. Manufacturing providing the largest downward contribution, falling by 4.6%; there were also falls from mining and quarrying (11.5%), electricity and gas (1.5%) and water and waste (0.5%). Economists had expected a 6.0% decrease in manufacturing.
The monthly decrease of 4.6% in manufacturing output was led by transport equipment, which fell by 20.5%, with the motor vehicles, trailers and semi-trailers industry falling by a record 34.3%; of the 13 subsectors, 10 displayed downward contributions, indicating that overall weakness was widespread.
Total production output decreased by 2.1% for Quarter 1 (Jan to Mar) 2020, compared with Quarter 4 (Oct to Dec) 2019; this was led by manufacturing output, which fell by 1.7%.
The quarterly fall in manufacturing is because of widespread weakness, with 9 of the 13 subsectors providing downward contributions; this was led by transport equipment which fell by 9.9%.
For Quarter 1 2020, production output decreased by 4.9%, compared with Quarter 1 2019; this was led by a fall in manufacturing of 6.0% where 12 of the 13 subsectors displayed downward contributions.
The coronavirus (COVID-19) had a strong negative impact on our estimates of monthly, three monthly and three monthly on a year ago growth for March 2020;
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