UK industrial production dips in May, but beats estimates

The Office for National Statistics (ONS) published the industrial and manufacturing production data this Thursday, showing that the manufacturing sector activity fell into contraction in May, driving the overall industrial output in the negative territory in the reported month.

Manufacturing output dropped 0.5% m/m in May versus a 2.3% rebound seen in April, while total industrial output contracted 0.5% m/m, after climbing 2.1% in April. Markets had predicted a negative reading of -1.2% and 1% respectively.

On annualized basis, UK manufacturing production was up 1.7%, compared with expectations of +0.6%. Total industrial output rose 1.4% from a year earlier, while it was predicted to have advanced 0.6%.