UK Production Output Declines in October 2024
The Office for National Statistics (ONS) Index of Production report highlights a notable decline in UK production output for October 2024, marking its lowest level since May 2020. This downturn follows a period of fluctuating performance, with increases and decreases seen in preceding months. The report provides insight into the performance of key sectors and identifies trends that could have broader implications for the UK economy.
Monthly Production Output
In October 2024, production output was estimated to have decreased by 0.6%. This drop follows a 0.5% increase in August 2024 and a subsequent 0.5% decrease in September 2024, highlighting a pattern of volatility in recent months. The decline in October was largely driven by reductions in two major sectors: mining and quarrying, which fell by 3.1%, and manufacturing, which saw a 0.6% decrease. These losses were partially offset by modest gains in electricity and gas, which rose by 1.4%, and water supply and sewerage, which increased by 0.5%.
Manufacturing Sector Performance
Within the manufacturing sector, 7 out of 13 subsectors experienced a decline in output. The most significant reduction came from the production of basic pharmaceutical products, which dropped by 2.6%. This contributed heavily to the overall decline in manufacturing output, emphasising the challenges faced by the sector in maintaining consistent performance during this period.
Three-Month Rolling Figures
Looking at the three months to October 2024, production output declined by 0.3% compared with the three months to July 2024. This marks the sixth consecutive three-monthly fall since the period ending in April 2024, underscoring a sustained downward trend in production. Sector-specific contributions to this decline include a 2.0% drop in mining and quarrying, a 1.2% fall in electricity and gas, and a 0.2% decrease in water supply and sewerage. Manufacturing output remained stagnant at 0.0%, showing no growth or decline.
The October 2024 figures highlight a challenging environment for the UK’s production industries. With overall output reaching its lowest level since May 2020, declines in mining, quarrying, and manufacturing have had a significant impact, despite limited gains in utilities. The continued decline across consecutive three-month periods signals ongoing weakness in the production sectors and raises concerns about the broader economic outlook. Strategic efforts to address these challenges will be crucial in stabilising the sector and fostering long-term growth.
Source: Index of Production, UK – Office for National Statistics
