UK industrial production rebounded in August

UK industrial production rebounded in August after two consecutive months of decline, rising at its fastest pace since February 2014 and overshooting the consensus expectations. Mining & quarrying output (6.0% m/m, +0.9pp contribution) was the main driver, also recording its largest rise since February 2014. Manufacturing helped lift production, gaining 0.5% over the month (+0.3pp contribution). 

Acceleration in the manufacture of transport equipment (4.6% m/m; +0.4pp contribution) was the key growth driver, accompanied by increments in metals & basic metals (2.2% m/m; +0.2pp contribution) and food, beverages & tobacco (0.9% m/m; +0.1pp contribution). Over the past year, total production improved by 1.9% y/y while manufacturing declined 0.8% y/y.

In terms of the main industrial groups, production was boosted by energy output, which rose by 4.1% m/m (+1.0pp contribution). Investment goods also supported the rise (2.5% m/m, +0.5pp contribution). Meanwhile, production of intermediate (-0.7% m/m) and consumer goods (durables: -1.4% m/m; nondurables: -0.1% m/m) were down over the month.