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- UK industrial production growth accelerated sharply in June compared to May
UK industrial production growth accelerated sharply in June compared to May
According to the report from Office for National Statistics, total production output decreased by 16.9% for Quarter 2 (Apr to Jun) 2020, compared with Quarter 1 (Jan to Mar) 2020, the largest fall since records began in January 1948; this was led by manufacturing output, which fell by a record 20.2%.
The three-monthly fall in manufacturing is because of widespread weakness, with 12 of the 13 subsectors providing downward contributions; this was led by transport equipment which fell by 49.1%.
In June 2020 the index of production is 11.6% below February 2020, the previous month of “normal” trading conditions, prior to the coronavirus (COVID-19) pandemic.
Production output rose by 9.3% between May 2020 and June 2020, with manufacturing providing the largest upward contribution, rising by 11.0%, the largest increase since records began in January 1968; there were also rises from mining and quarrying (8.4%), water and waste (4.1%) and electricity and gas (4.1%). Economists had expected a 9.2% increase.
The monthly increase of 11.0% in manufacturing output was led by transport equipment (52.6%) but this subsector remained 38.2% weaker compared to February 2020; of the 13 subsectors, 11 displayed upward contributions.
For Quarter 2 (Apr to Jun) 2020, compared with Quarter 2 (Apr to Jun) 2019, production output decreased by a record 18.8%; this was led by a fall in manufacturing of a record 22.0%, where 12 of the 13 subsectors displayed downward contributions.
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