UK Industrial Output Rebounds More than Expected

Industrial production in the UK rose 0.5% month-on-month in February 2026, exceeding market expectations of a 0.2% increase and rebounding from a 0.1% fall in January. Output in mining and quarrying recovered sharply (3.9% vs -5.3% in January), led by extraction of crude petroleum and natural gas (5.1% vs -7.0%), while electricity, gas, steam, and air-conditioning supply increased at a faster pace (1.5% vs 0%). However, manufacturing production edged down 0.1%, after a 0.2% rise in the previous month, mainly due to lower output for transport equipment (-2.1% vs 3.6%), basic metals and metal products (-2.1% vs 0.7%), and food, beverages, and tobacco (-1.2% vs 2.0%). Growth in water supply, sewerage, and waste management also slowed (0.2% vs 1.5%). On an annual basis, industrial activity decreased by 0.4%, reversing an upwardly revised 0.5% gain but coming in below market expectations of a 0.9% drop.

Industrial production in the UK fell 0.1% month-on-month in January 2026, defying market expectations of a 0.2% rise, but easing from a 0.9% decline in December. Manufacturing output rebounded modestly (0.1% vs -0.5% in December), mainly driven by recoveries in the manufacture of transport equipment (4% vs -1.1%), food products, beverages, and tobacco (2.2% vs -1.4%), chemical and chemical products (1.5% vs -5%), and other manufacturing and repair (4.5% vs -2%). Output also rebounded for water supply, sewerage, and waste management (1.9% vs -2.4%) and declined at a softer pace for electricity, gas, steam, and air-conditioning supply (-0.3% vs -1.7%). In contrast, output in mining and quarrying continued to fall sharply (-3.2% vs -0.7%). On an annual basis, industrial activity edged down to 0.4% from 0.5% in December, slightly below market expectations of a 0.6% gain.

Industrial production in the UK unexpectedly fell by 0.9% month-on-month in December 2025, defying market expectations of a flat reading and reversing an upwardly revised 1.3% gain in the previous month. This marked the first decline since September, as manufacturing output slipped (-0.5% vs 1.9% in November), weighed down by lower production in basic pharmaceutical products and preparations (-2.6%), food products (-1.4%), and chemical products (-5%). The overall drop was also driven by electricity, gas, steam, and air-conditioning supply (-1.7% vs 1%) and water supply, sewerage, and waste management (-2.4% vs -0.8%). Meanwhile, output decreased at a softer pace for mining and quarrying (-0.7% vs -0.9%). On a yearly basis, industrial output eased to 0.5% from 2.3% in the previous month, well below market expectations of 1.5% increase. For 2025, total annual production rose 0.2%, marking its first yearly growth since 2021.