UK industrial output falls in June

However, output in manufacturing increased 0.2 percent in June, as expected by economists in a Reuters poll, partially recovering from a 0.6 percent drop in May.

The UK’s manufacturing sector saw a modest rise in June as official figures showed hopes of putting factories at the centre of the economic recovery have yet to gain traction.

Industrial production in the United Kingdom unexpectedly fell in June as North Sea producers cut output for the first time in three months.

The data release comes shortly before the Bank of England announces its latest interest rate decision. While some policy makers are expected to push for an increase in borrowing costs to counter growing wage pressures, recent surveys suggest the economy lost some momentum at the start of the third quarter.

According to figures published on Thursday, industrial production in Britain fell 0.4% month-on-month in June compared with analysts’ expectations of a 0.1% decline and May’s 0.4% drop. Production was forecast to rise marginally by 0.1 percent.

The ONS revised down its estimate for industrial output growth in the second quarter to 0.7 percent on the quarter from 0.1 percent.

“Weak demand for investment goods seen throughout this year continues to drag on growth across the sector”, said Mark Swift, head of communications at EEF, the manufacturers’ organisation.

The ONS blamed part of the fall on maintenance in a major oil field. This was largely due to a 31 per cent increase in production of weapons and ammunition.