FX.co ★ UK Industrial Output Unexpectedly Rises

Industrial production in the UK increased by 0.2% month-on-month in July 2026, confounding market expectations of a 0.2% decline and reversing the 0.2% drop recorded in June. This was the first monthly expansion since April, underpinned by a rebound in manufacturing output, which rose 0.9% after a 0.5% contraction in the previous month.

The largest positive contribution came from the manufacture of computer, electronic and optical products, where output advanced 3.9%. Overall industrial activity was further supported by a 2.0% rise in water supply, sewerage and waste management, following a 1.5% decline in June.

By contrast, output in mining and quarrying fell 4.4%, giving back some of the 5.1% increase seen previously, while electricity, gas, steam and air-conditioning supply shrank 1.5%, extending a 0.3% decline in the prior month.

On an annual basis, industrial production grew 0.6% in July, beating market forecasts of a 0.2% increase and rebounding from a 0.2% decrease in the previous month.