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;