ONS Index of Production, UK: September 2024 – A 0.8% Decline in Monthly Output
The Office for National Statistics (ONS) released the “Index of Production” for July 2024, indicating a 0.8% decline in monthly production output. This contrasts with the 0.8% increase observed in June 2024, highlighting volatility in the sector.
Key Insights from July 2024 Production Output
The overall drop in production was driven largely by a 1.0% decrease in the manufacturing sector. Within manufacturing, 7 of the 13 subsectors experienced declines. Notably, the “manufacture of transport equipment” fell by 2.3%, while “manufacture of machinery and equipment” dropped sharply by 4.7%, both making significant negative contributions to the overall decline.
In contrast, a 1.6% rise in “manufacture of wood, paper products, and printing” provided some support, being the only manufacturing subsector to experience growth above 1% in July.
Other key sectors also saw declines, with “electricity and gas” output falling by 1.7% and “water supply and sewerage” decreasing by 0.7%. These losses were partially offset by a notable 3.9% rise in the “mining and quarrying” sector.
Three-Month Comparison: April to July 2024
For the three months to July 2024, production output saw a marginal 0.1% decline compared to the previous three months. This was influenced by a 0.3% drop in manufacturing and a 1.4% decrease in mining and quarrying. However, sectors such as “electricity and gas” (up 2.1%) and “water supply and sewerage” (up 0.9%) demonstrated resilience during this period.
The 0.8% decline in UK production output in July 2024 underscores the challenges facing the manufacturing sector, with notable weaknesses in key industries like transport equipment and machinery. While the rise in mining and utility sectors offered some relief, the overall outlook for production remains subdued as the economy continues to grapple with fluctuating output levels.
Index of Production, UK – Office for National Statistics (ons.gov.uk)
