Biggest rise in UK industrial output in two decades

UK industrial output saw the largest quarterly increase in 17 years, new figures have revealed.

Industrial output increased 2.1 per cent in the second quarter of 2016 compared with Q1, according to data from the Office of National Statistics (ONS).

Manufacturing provided the greatest contribution to this quarterly increase in output, which was up by 1.8 per cent.

Total production is estimated to have seen a 1.6 per cent year-on-year increase in June 2016. This was also the sixth consecutive increase since December 2015.

There were increases in all sectors, although the largest contribution in the month of June came from manufacturing – up by 0.9 per cent on the same month in 2015.

However, despite these figures there were signs that growth was slowing in the quarter, with manufacturing decreasing 0.3 per cent between May and June. This followed a 0.6 per cent decrease in the previous month.

According to the report, GDP remained in line with expectations, increasing 2.1 per cent in Q2. Despite a strong easing off of GDP in the run-up to the EU referendum, June saw an increase of 0.1 per cent, up from the 0.6 per cent decrease recorded in May.