UK industrial production unexpectedly declined by 0.9% month-on-month in December 2025, defying market expectations for no change and reversing an upwardly revised 1.3% increase in November. This was the first monthly contraction since September.
The downturn was led by a 0.5% fall in manufacturing output (after a 1.9% rise in November), with notable weakness in basic pharmaceutical products and preparations (-2.6%), food products (-1.4%), and chemical products (-5%). Output also fell in electricity, gas, steam, and air-conditioning supply (-1.7% vs +1% previously) and in water supply, sewerage, and waste management (-2.4% vs -0.8%). By contrast, the decline in mining and quarrying output moderated slightly (-0.7% vs -0.9%).
On an annual basis, industrial production growth slowed sharply to 0.5% in December from 2.3% in November, falling well short of the 1.5% increase expected by markets. For 2025 as a whole, total industrial output edged up by 0.2%, its first annual expansion since 2021.
