UK Industrial Output Unexpectedly Falls

Industrial production in the UK fell by 0.9% month-over-month in July 2025, defying market expectations of a flat reading and reversing a 0.7% gain in the previous month. Output declined for manufacturing (-1.3% vs 0.5% in June), with the largest negative contributions coming from computer, electronic and optical products, basic pharmaceutical products, and chemical and chemical products. Moreover, output continued to fall for mining and quarrying (-2.0% vs -0.4%), while it moderated for electricity, gas, steam and air-conditioning supply (2.0% vs 3.3%). On the other hand, output increased at a faster pace for water supply, sewerage and waste management (0.8% vs 0.5%). On a yearly basis, industrial production edged down to 0.1% from 0.2% in June, well below market expectations of a 1.1% rise.