FX.co ★ UK Industrial Output Unexpectedly Rises

Industrial production in the UK rose 0.3% month-on-month in September 2026, beating market expectations of a 0.3% decline, although this marked a slowdown from the 0.7% increase recorded in August. Growth in output moderated in the mining and quarrying sector (1.4% vs 3.2% in August), while production in electricity, gas, steam and air-conditioning supply contracted (-0.3% vs +0.6%). In addition, activity in water supply, sewerage and waste management fell more sharply (-1.7% vs -0.6%).

By contrast, manufacturing output held steady, expanding 0.7% for a second consecutive month. The strongest contribution came from food products, beverages and tobacco (2.9%), whereas basic metals and metal products registered the steepest decline (-2.1%).

Over the third quarter of 2026 as a whole, industrial production edged up 0.1%, reversing the 0.1% contraction seen in the previous three-month period. On an annual basis, industrial output accelerated to 3.1%, up from a downwardly revised 1.1% and above market forecasts of 2.9%, marking the fastest year-on-year growth since June 2021.