ONS Manufacturing Production Output Report Summary - November 2024
This summary, based on data from the Office for National Statistics (ONS), highlights key movements in the UK’s production industries, including manufacturing, mining, energy supply, and water management, for September and Quarter 3 of 2024. The report sheds light on an ongoing decline in production output, reflecting broader economic challenges.
Quarterly Trends
Production output for Quarter 3 (July to September) 2024 declined by 0.2%, following a 0.3% fall in Quarter 2 (April to June). Although manufacturing experienced slight growth of 0.2%, driven by a rebound from earlier weakness in April and May, this increase was outweighed by decreases in electricity and gas (-2.7%) and water supply and sewerage (-0.9%). The manufacturing sector’s modest growth highlights some resilience, but its impact was not sufficient to counterbalance the broader downturn across other production industries.
Monthly Trends
Monthly production trends showed a similar decline. Production output fell by 0.5% in September 2024, after a 0.7% decrease in July and a 0.5% increase in August. This marked September 2024 as the lowest monthly production level since May 2020. The decline was primarily
driven by a 1.0% decrease in manufacturing output, with 8 of its 13 subsectors experiencing reductions. The most significant drop came from basic metals and metal products, which declined by 2.7%. Electricity and gas fell by 1.9%, and water supply and sewerage by 0.7%.
Sector-Specific Performance
Not all sectors experienced downturns. Mining and quarrying saw a positive contribution, rising by 3.7% in September. This was largely due to a 4.3% increase in crude petroleum and natural gas extraction, which partially recovered from a 5.7% drop in August. Despite this improvement, the gains in mining and quarrying were not enough to offset the losses across other key sectors.
The ONS data underscores a challenging period for the UK’s production industries. With September 2024 production output falling to levels last seen in May 2020, the sector remains under pressure. While there was some strength in manufacturing and mining, significant declines in energy-related sectors and broader production challenges signal ongoing economic headwinds that may require focused policy responses to stabilize and revive industrial activity.
Source: Index of Production, UK – Office for National Statistics
