UK Economy

Industrial output unexpectedly falls

LONDON (Reuters) - Industrial output fell unexpectedly in June after an earlier-than-usual start to seasonal oil field maintenance work, but the fall does not alter the strong economic growth recorded between April and June.

The Office for National Statistics said industrial output fell 0.5 percent in June, confounding forecasts for a 0.2 percent rise, after oil and gas output fell 6.0 percent on the month, its biggest fall in just under a year.

Manufacturing output rose 0.3 percent on the month, also below expectations for a 0.4 percent rise.

The ONS said the decline in oil and gas extraction was due to maintenance work being carried out in June, rather than in August when work on oil fields is normally done.

But Friday’s data would not lead to any revision of the Q2 GDP figures, which showed growth of 1.1 percent for the economy as a whole.

The ONS also published data showing that annual factory gate inflation slowed less than expected in July to 5.0 percent from 5.1 percent, after a monthly rise in food prices outweighed a drop in petrol costs.

Input price inflation picked up much less than expected, at a rate of 10.8 percent from 10.7 percent in June.

Analysts had expected producer output price inflation of 4.9 percent and input price inflation of 11.4 percent.