FX.co ★ UK Industrial Output Unexpectedly Falls

In May 2025, the UK's industrial production decreased by 0.9% compared to the previous month, which had seen a 0.6% decline. This contraction occurred despite market forecasts anticipating no change. The mining and quarrying sector experienced a significant drop, shrinking by 3.2%, compared to the 3.5% growth reported in April. Growth in the water supply, sewerage, and waste management sectors also decelerated to 0.8% from 1.4%. Manufacturing production continued its decline, contracting by 1.0% following a 0.7% decrease the previous month, with notable reductions in the output of basic pharmaceutical products, transport equipment, and basic metals and metal products. In contrast, the output for electricity, gas, steam, and air-conditioning supply showed a recovery, rising by 0.3% compared to a 6.0% decline in April. Year-on-year, industrial production decreased by 0.3% in May 2025, overturning a revised 0.3% increase from the previous year and contrary to expectations of a 0.1% gain.