Index of Production, UK: June 2020

• Total production output decreased by 16.9% for Quarter 2 (Apr to Jun) 2020, compared with Quarter 1 (Jan to Mar) 2020, the largest fall since records began in January 1948; this was led by manufacturing output, which fell by a record 20.2%.

• The three-monthly fall in manufacturing is because of widespread weakness, with 12 of the 13 subsectors providing downward contributions; this was led by transport equipment which fell by 49.1%.

• In June 2020 the index of production is 11.6% below February 2020, the previous month of “normal” trading conditions, prior to the coronavirus (COVID-19) pandemic.

• Production output rose by 9.3% between May 2020 and June 2020, with manufacturing providing the largest upward contribution, rising by 11.0%, the largest increase since records began in January 1968; there were also rises from mining and quarrying (8.4%), water and waste (4.1%) and electricity and gas (4.1%).

• The monthly increase of 11.0% in manufacturing output was led by transport equipment (52.6%) but this subsector remained 38.2% weaker compared to February 2020; of the 13 subsectors, 11 displayed upward contributions.

• For Quarter 2 (Apr to Jun) 2020, compared with Quarter 2 (Apr to Jun) 2019, production output decreased by a record 18.8%; this was led by a fall in manufacturing of a record 22.0%, where 12 of the 13 subsectors displayed downward contributions.

• The coronavirus continued to have a significant negative impact on our estimates of monthly, three-monthly and three-monthly on a year ago growth for production output during June 2020, resulting in record falls for the latter two estimates; for further and detailed analysis of the effect on our monthly index of production estimate, please see our article Coronavirus and the impact on output in the UK economy, UK: June 2020, published today (12 August 2020).

All data related to the IoP are available on the Related data page.

The Index of Production (IoP) uses data from a variety of sources and is calculated by taking turnover and removing the impact of price changes or by using direct volume estimates.

The majority of these data are collected as “turnover values” through the Monthly Business Survey (MBS). In addition, direct volume series are collected by the Department for Business, Energy and Industrial Strategy (BEIS) and the International Steel Statistics Bureau (ISSB) for steel industries.

From January 2018, Value Added Tax (VAT) data have also been included across 64 production industries for small and medium-sized businesses. For more information, see VAT turnover data in national accounts: background and methodology.

A comprehensive list of the IoP source data can be found in the Gross domestic product (GDP(O)) source catalogue (XLS, 715KB).

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the UK Index of Production QMI.

After EU withdrawal

As the UK leaves the EU, it is important that our statistics continue to be of high quality and are internationally comparable. During the transition period, those UK statistics that align with EU practice and rules will continue to do so in the same way as before 31 January 2020.

After the transition period, we will continue to produce our national accounts statistics in line with the UK Statistics Authority’s Code of Practice for Statistics and in accordance with internationally agreed statistical guidance and standards.

The Withdrawal Agreement outlines a need for UK Gross National Income (a fundamental component of the national accounts, which includes gross domestic product (GDP)) statistics to remain in line with those of other EU countries until the EU budgets are finalised for the years in which we were a member. To ensure comparability during this cycle, the national accounts will continue to be produced according to European System of Accounts (ESA) 2010 definitions and standards.

Coronavirus (COVID-19)

The Office for National Statistics’ (ONS’) Monthly Business Survey (MBS) is fully online, meaning that business owners can logon from any location and submit their data at an appropriate time. Most other data in the IoP come from the BEIS and therefore will be less impacted than survey data.

Our latest data and analysis on the impact of the coronavirus (COVID-19) on the UK economy and population is now available in a single location. This will be the hub for all special coronavirus-related publications, including the fortnightly Business Impact of Coronavirus (COVID-19) Survey (BICS).

The ONS has released a public statement on COVID-19 and the production of statistics. Specific queries must be directed to the Media Relations Office.