UK industrial output plunges in August

British industrial output in August fell unexpectedly and at its sharpest monthly pace since January as factories shut down for the summer break and oil and gas plants closed for annual maintenance, official data showed on Tuesday.

The Office for National Statistics said manufacturing output fell 1.9 percent on the month — the steepest fall since January — and compared with July's downwardly revised rise of 0.7 percent. That confounded analysts' expectations for an increase of 0.3 percent.

The wider measure of industrial output, which includes energy production, fell by 2.5 percent on the month, also the sharpest drop since January and against forecasts for an increase of 0.2 percent.

The ONS said there was anecdotal evidence that factories had shut down for the summer break in August and that part of July's strong increase in output had been due to firms ramping up production before the recess.

And oil and gas output was affected by planned closures of plants due to annual maintenance work. Oil and gas output fell by 7.7 percent on the month — the steepest decline since October 2008.

Still, the figures are likely to dampen expectations for a strong rebound in growth in the third quarter of this year.

Indeed, in manufacturing, the ONS said there were falls in all 13 categories of output, particularly in paper and publishing, electrical and optical equipment and food and drink.

Motor vehicle production, which had given a boost to manufacturing output in July, fell by 2.6 percent in August, the data showed.