UK industrial production increased less than forecast in May

According to the report from Office for National Statistics, production output rose by 1.4% between April 2019 and May 2019 due to rises from all four main sectors; the manufacturing sector provided the largest upward contribution, rising by 1.4%. Economists had expected a 1.5% increase of production output. Within manufacturing over half of the subsectors fell, so overall growth is due to transport equipment, which rose by 12.4%; this is the strongest rise since April 2005 and is a partial bounceback from the fall of 13.8% during April 2019.

Production output rose by 0.3% for the three months to May 2019, compared with the three months to February 2019, due to rises from all four main sectors, led by mining and quarrying (1.6%), and manufacturing (0.1%). The three-monthly increase in manufacturing is due mainly to widespread strength with 9 of the 13 subsectors increasing; however overall strength is partially offset by a strong fall of 4.6% from transport equipment.

For the three months to May 2019 compared with the same three months to May 2018, production output increased by 0.4%, with notable rises in manufacturing of 0.6% and mining and quarrying of 4.1%; partially offset by a fall of 3.7% from electricity and gas.