In June 2025, UK production output rebounded, rising by 0.7 percent after a sharp revised 1.3 percent fall in May and stagnation in April. On an annual basis, output edged up by 0.2 percent, recovering from a 0.2 percent decline in May. Growth was driven by notable gains in manufacturing (0.5 percent), electricity and gas (3.3 percent), and water supply and sewerage (0.5 percent), partially offset by a 0.4 percent drop in mining and quarrying.

Manufacturing, which had fallen 1.0 percent in May, saw renewed momentum, with 8 of 13 subsectors expanding. The standout performer was computer, electronic and optical products, surging by 8.8 percent, delivering the largest positive impact on overall growth. Other subsectors made only marginal contributions, each below 0.1 percentage points.

This mixed but overall positive performance signals a fragile recovery, with strong gains in high-tech manufacturing and utilities balancing weaknesses in extractive industries. While the monthly rise offers some relief, the flat annual manufacturing growth shows that the recovery is fragile. This latest update takes the RPI to 9 and the RPI-P to 9. Meaning that economic activities are within the expectations of the UK economy.

Output is expected to rebound by 0.5 percent in June after dropping 0.9 percent in May.

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.

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.