Industrial production in UK grew moderately in May

According to the report from Office for National Statistics, monthly production increased by 0.8% between April 2021 and May 2021 meaning output was 2.6% below its February 2020 level, the last month of "normal" trading conditions prior to the coronavirus (COVID-19) pandemic. Economists had expected a 1.5% increase in May.

The rise in production was driven by increases of 5.7% in electricity and gas, and 3.8% in mining and quarrying; these were offset partially by a fall of 0.1% in manufacturing; water supply and sewerage remained flat at 0.0%.

The 0.1% fall in manufacturing over the month was driven by lower output in 5 of the 13 manufacturing subsectors and was led by a fall of 16.5% in the manufacture of transport equipment; this was offset by a rise of 25.2% in manufacture of basic pharmaceutical products and pharmaceutical preparations.

Production output for the three months to May 2021 increased by 0.8% compared with the three months to February 2021.

The coronavirus pandemic has had a generally negative impact on production output, although each sector has been affected differently; manufacturing output remains 3.0% below its February 2020 level, and mining and quarrying is 21.8% below; however, electricity and gas is now 9.6% above its February 2020 level, and water supply and sewerage is 3.4% above