ONS Production Output Report: March 2026
This summary is based on the latest Office for National Statistics (ONS) Index of Production release, covering the three months to January 2026. It highlights recent performance across the UK’s key production industries, including manufacturing, mining and quarrying, energy supply, and water and waste services.
Monthly Performance Analysis
Production output edged down by 0.1% in January 2026, following a sharper fall of 0.9% in December and growth of 1.3% in November, indicating a mixed start to the year.
The slight monthly decline was largely driven by a notable drop in mining and quarrying, which fell by 3.2%. This was primarily due to reduced output in oil and gas extraction, which declined by 4.6%. Electricity and gas also saw a small decrease of 0.3%.
These declines were partly offset by increases elsewhere. Water supply and sewerage rose by 1.9%, while manufacturing recorded marginal growth of 0.1%.
Within manufacturing, performance was mixed. Just 5 of the 13 subsectors reported growth. The strongest gains came from transport equipment (up 4.0%), alongside increases in other manufacturing (up 4.5%) and food production (up 2.2%). However, these were offset by notable declines in machinery and equipment (down 7.7%), electrical equipment (down 9.0%), and computer, electronic and optical products (down 2.8%).
Three-monthly Trends
Looking at the broader three-month period to January 2026, production output increased by 1.3% compared with the previous three months, signalling a modest recovery in overall activity.
This growth was driven primarily by manufacturing, which rose by 1.5%, alongside a strong contribution from electricity and gas, which increased by 2.2%. In contrast, water supply and sewerage fell slightly by 0.5%, while mining and quarrying saw a marginal decline of 0.1%.
Manufacturing was the key driver of quarterly growth, with 8 of the 13 subsectors expanding. Transport equipment stood out, rising by 8.1% and accounting for a significant share of the overall increase. Within this subsector, motor vehicle production surged by 17.5%, reflecting a rebound following disruption caused by a cyber incident in September 2025.
In summary, while production output dipped slightly in January due to weakness in mining and energy, the wider three-month trend shows a return to growth, supported by a strong recovery in manufacturing – particularly in transport equipment. Despite ongoing variability across subsectors, the sector shows signs of stabilising as it moves into 2026.
Source: Index of Production, UK – Office for National Statistics (ons.gov.uk)
