13.08.202606:16:51UTC+00UK Industrial Output Unexpectedly Falls

Industrial production in the UK declined by 0.2% month-on-month in June 2026, confounding market expectations of a 0.1% increase, though the fall was smaller than May’s 0.7% contraction. Output in mining and quarrying rebounded strongly, rising 5.1% after a 5.1% drop in May, driven by a robust recovery in crude petroleum and natural gas extraction, which grew 6.2% following a 5.5% decline. Weakness also moderated in water supply, sewerage, and waste management, where output fell 1.5% compared with a 3.1% decrease in the previous month.

By contrast, manufacturing output remained under pressure, shrinking 0.5% after a 0.2% decline in May. The sector was dragged down in particular by basic pharmaceutical products and preparations, where production slumped 5.1% after a 0.2% increase, and by computer, electronic, and optical products, which fell 0.9% following a 2.1% rise. On a quarterly basis, overall industrial production was flat. Year-on-year, industrial output decreased 0.2%, missing forecasts for a 0.2% increase and reversing May’s 1% gain, marking the first annual decline since February.