FX.co ★ UK Manufacturing Output Worse than Expected

In May 2025, manufacturing output in the UK experienced a 1% decline compared to the previous month, significantly surpassing market expectations of a modest 0.1% drop. This represents a sharper reduction following a revised 0.7% decrease in the prior month and is the most substantial decline since July of the preceding year. This marked the third consecutive month of contraction, with downturns recorded in 9 out of 13 manufacturing subsectors. The most notable negative impacts stemmed from basic pharmaceutical products, which fell by 4.2% compared to a 5.4% increase in April. This was followed by declines in transport equipment at -1.3% against a previous -5.3%, and basic metals and metal products, dropping by 1.8% from a prior gain of 0.4%. Conversely, certain sectors saw production growth, including machinery and equipment, which increased by 3.4% compared to April's -1.4%, electrical equipment rising by 0.4% from a previous 4.5%, and wood, paper products, and printing which improved by 1% versus a -1.3% decrease earlier. On an annual basis, manufacturing output edged up by 0.3% in May, falling slightly short of the anticipated 0.4% rise and decelerating from a revised 1.3% growth in the prior period.