ONS Production Output Report: September 2026
The latest Index of Production figures from the Office for National Statistics (ONS) show that UK production activity weakened across the three months to July 2026, despite a modest improvement during July itself.
Overall production declined for the first time on a rolling three-month basis since late 2025. Manufacturing remained a relative bright spot, but weaker activity across utilities, energy and extraction industries was enough to pull the headline figure lower.
Monthly Performance Analysis
Production output increased by 0.2% in July 2026, marking a return to monthly growth following declines of 0.2% in June and 0.7% in May.
Manufacturing was the strongest contributor to July’s improvement, with output increasing by 0.9%. Water supply and sewerage also recovered during the month, rising by 2.0%.
However, performance across the remaining production sectors was weaker. Mining and quarrying output fell by 4.4%, while electricity and gas declined by 1.5%, limiting the overall monthly increase.
The figures suggest that July brought some renewed momentum to parts of UK industry, although growth remained uneven across the major production sectors.
Three-Month Trends
Looking at the broader trend, production output decreased by 0.5% in the three months to July 2026 compared with the three months to April.
This represents the first decline in the rolling three-month measure since November 2025, bringing the previous run of improving production performance to an end.
Three of the four main sectors recorded lower output. Water supply and sewerage experienced the largest fall at 4.0%, followed by mining and quarrying at 2.6% and electricity and gas at 1.5%.
Manufacturing moved against this trend, increasing by 0.5% and helping to limit the overall contraction.
Manufacturing Performance
Manufacturing continued to provide some resilience within the wider production landscape.
Seven of the thirteen manufacturing subsectors increased output across the three months to July. Computer, electronic and optical products delivered the strongest positive contribution, with output rising by 3.9%.
Growth elsewhere was offset by weaker performance among the remaining subsectors, including a 1.2% decline in basic metals.
The monthly picture was more positive. Eight of the thirteen manufacturing subsectors expanded during July, with computer, electronic and optical products increasing by 5.2%. Basic pharmaceutical products also recorded strong growth of 3.4%, while basic metals rebounded by 2.8%.
This stronger July performance suggests that momentum within parts of manufacturing improved as the second half of the year began.
Utilities and Wider Production
Performance outside manufacturing continued to place pressure on the overall production figures.
The 4.0% three-month decline in water supply and sewerage was heavily influenced by an 11.8% fall in sewerage output. This represented the sharpest rolling three-month decline for the industry since 2017 and followed five consecutive monthly reductions between February and June.
Mining and quarrying and electricity and gas also remained below their previous three-month levels, reinforcing the contrast between manufacturing and other areas of the production economy.
Sector Outlook
The latest figures present a mixed picture for UK industry. Production declined across the three months to July, ending the period of rolling growth seen since late 2025, but July’s monthly improvement provides a more encouraging signal.
Manufacturing remains central to this picture. Growth across technology-related manufacturing, pharmaceuticals and several other subsectors helped counter weaker performance elsewhere, while the wider production sector continues to face pressure from utilities, energy and extraction.
For engineering and manufacturing businesses, the figures highlight the importance of looking beyond the overall production measure. While the headline trend has weakened, individual manufacturing markets continue to show areas of growth and opportunity as the sector moves further into the second half of 2026.
Source: Index of Production, UK – Office for National Statistics (ONS)
