| Actual | Previous | Revised | |
|---|---|---|---|
| Industrial Production - M/M | 1.5% | -0.9% | -0.5% |
| Industrial Production - Y/Y | 0.1% | -1.5% | -0.5% |
| Manufacturing Output - M/M | 2.2% | -1.1% | -1.0% |
| Manufacturing Output - Y/Y | 0.3% | -1.5% | -0.9% |
Highlights
February 2025 marked a strong rebound in UK production output, rising by 1.5 percent after a subdued January, signalling renewed industrial energy. The surge was driven chiefly by manufacturing, which leapt 2.2 percent, supported by gains in electricity and gas (2.0 percent) and water supply and sewerage (1.1 percent). Only mining and quarrying weighed negatively, falling 3.0 percent.
The manufacturing sector's recovery was broad, with output rising in 10 out of 13 subsectorssix of which had declined in Januarypointing to a turnaround in business confidence and operational capacity. Notably, computer, electronic and optical products posted an impressive 9.8 percent increase, possibly reflecting rising global tech demand. Pharmaceuticals (4.4 percent) and transport equipment (1.8 percent) also contributed strongly, suggesting resilience in high-value production sectors.
Over the three months to February, production grew 0.7 percent, reflecting sustained recovery. Manufacturing led this trend (0.6 percent), aided by modest gains in utilities, although the ongoing dip in mining (minus 0.7 percent) tempered overall progress.
These figures suggest that UK production is regaining strength, with technology and pharmaceuticals offering promising signs of industrial dynamism amid an otherwise mixed economic backdrop, taking the RPI to 23 and the RPI-P to 35 in the UK. Meaning that economic activities are outperforming expectations in the UK economy.
The manufacturing sector's recovery was broad, with output rising in 10 out of 13 subsectorssix of which had declined in Januarypointing to a turnaround in business confidence and operational capacity. Notably, computer, electronic and optical products posted an impressive 9.8 percent increase, possibly reflecting rising global tech demand. Pharmaceuticals (4.4 percent) and transport equipment (1.8 percent) also contributed strongly, suggesting resilience in high-value production sectors.
Over the three months to February, production grew 0.7 percent, reflecting sustained recovery. Manufacturing led this trend (0.6 percent), aided by modest gains in utilities, although the ongoing dip in mining (minus 0.7 percent) tempered overall progress.
These figures suggest that UK production is regaining strength, with technology and pharmaceuticals offering promising signs of industrial dynamism amid an otherwise mixed economic backdrop, taking the RPI to 23 and the RPI-P to 35 in the UK. Meaning that economic activities are outperforming expectations in the UK economy.
Definition
Industrial production measures the physical output of the mining and quarrying, manufacturing, gas and electric, and water supply and sewerage sectors. Manufacturing is seen as the best guide to underlying developments as the other subsectors can be highly volatile on a short-term basis. Estimates are largely based on a monthly business survey of roughly 6,000 companies.
Description
Industrial and manufacturing outputs are watched carefully by market participants despite the decline in the importance of manufacturing in the UK economy. Manufacturing output is the preferred number rather than industrial production which can be unduly influenced by electrical generation and weather. The manufacturing index is widely used as a short-term economic indicator in its own right by both the Bank of England and the UK government. Market analysts also focus on manufacturing and its sub-sectors to get insight on industry performance.
Industrial production accounts for less than 16 percent of the economy within which the key manufacturing sector is worth about ten percentage points. Total manufacturing is divided into thirteen sub-sectors, ranging from food, drink and tobacco through chemicals and chemical products to electronics and transport equipment. Consequently, this report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
Industrial production accounts for less than 16 percent of the economy within which the key manufacturing sector is worth about ten percentage points. Total manufacturing is divided into thirteen sub-sectors, ranging from food, drink and tobacco through chemicals and chemical products to electronics and transport equipment. Consequently, this report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
