UK industrial output posts the biggest decline in four years

According to data from the Office for National Statistics (ONS), industrial output in the UK posted an unexpected decline in October due to the ongoing maintenance in the North Sea oil field. Industrial production was down by 1.3% on the month following the decrease of 0.4% in September, missing analysts’ estimates which called for an increase of 0.2%. This was reportedly the biggest decrease on the month in four years.

Industrial production decreased by 1.1% on a yearly basis, missing economists’ expectations which called for a 0.5% rise. Manufacturing output also decreased 0.9% and fell below the forecasts which called for a growth of 0.2%.

On a yearly basis, manufacturing output was down by 0.4% and exceeded the forecasts which called for a decline of 0.7%. Industrial production also declined by 1.1% year-on-year and stood below the expectations of a growth of 0.5%.

Economists reportedly expect the economy to recover quickly in the coming quarters following the completion of the maintenance at a major oilfield while they think it does not seem likely in the near term for the production and exports to rebalance sustainably.