UK industrial production unexpectedly fell in June

The Office for National Statistics said that monthly production fell by 0.7% between May 2021 and June 2021 meaning output was 3.2% below its February 2020 level, the last month of "normal" trading conditions prior to the coronavirus (COVID-19) pandemic. Economists had expected a 0.3% increase between May and June.

The fall in production was led by decreases of 11.9% in mining and quarrying and 1.9% in electricity and gas; these were offset partially by a 0.2% rise in manufacturing and a 1.1% rise in water supply and sewerage.

The 0.2% rise in manufacturing over the month was driven by an increase in output in 8 of the 13 manufacturing subsectors and was led by a rise of 7.4% in the manufacture of transport equipment; this was offset partially by a fall of 12.4% in the manufacture of basic pharmaceutical products subsector.

Production output for Quarter 2 (Apr to June) 2021 increased by 0.5% compared with Quarter 1 (Jan to Mar) 2021.

The COVID-19 pandemic has had a generally negative impact on production output, although each sector has been affected differently.

Manufacturing output remains 2.3% below its February 2020 level, and mining and quarrying is 31.6% below; electricity and gas is now 5.3% above its February 2020 level, and water supply and sewerage is 4.6% above.