16.07.202606:25:57UTC+00UK Industrial Output Falls More than Expected

Industrial production in the UK fell by 0.5% month-on-month in May 2026, a sharper decline than the 0.1% drop anticipated by markets and reversing an upwardly revised 0.2% increase recorded in April. This was the first monthly contraction since January and was largely driven by a steep fall in mining and quarrying output (-4.6% vs +2.4% in April). Within this category, crude petroleum and natural gas extraction slumped by 4.8%, reaching its lowest level since comparable records began in 1990.

Manufacturing output growth also lost momentum, easing to 0.1% from 0.5% in the previous month. The slowdown was led by weaker performance in the manufacture of basic pharmaceutical products and pharmaceutical preparations, where growth moderated to 0.6% from 4.3%. Overall industrial production was further dragged down by a contraction in water supply, sewerage and waste management (-2.4% vs +0.2% in April).

By contrast, the decline in electricity, gas, steam and air-conditioning supply was much more moderate, at 0.1% compared with a 2.1% fall in April. On an annual basis, industrial production rose by 1% in May, up from a revised flat reading (0.0%) in April, but still undershooting market expectations of a 1.2% increase.