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.