Index of Production, UK: March 2021

• Monthly production grew by 1.8% between February 2021 and March 2021 but remained 1.8% below its February 2020 level, the last month of "normal" trading conditions prior to the coronavirus (COVID-19) pandemic.

• The growth in production was driven by increases of 2.1% in manufacturing, 1.1% in water supply and sewerage, and 2.5% in mining and quarrying; these were offset partially by a fall in electricity and gas of 0.2%.

• The 2.1% rise in manufacturing over the month was driven by higher output in 10 of the 13 manufacturing subsectors, the largest being a rise of 8.3% in manufacturing of machinery and equipment.

• Production output for the three months to March 2021 (Quarter 1 2021) fell by 0.4% compared with the three months to December 2020 (Quarter 4 2020).

• The coronavirus pandemic has had a generally negative impact on production output, although each sector has been affected differently: manufacturing output remains 2.2% below its February 2020 level and mining and quarrying is 10.2% below; however, electricity and gas is 1.9% above its February 2020 level and water supply and sewerage is 3.6% above; 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: March 2021, published today (12 May 2021).

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 IoP QMI.

Leaving the EU

As the UK enters into a new Trade and Cooperation Agreement with the EU, the UK statistical system will continue to produce and publish our wide range of economic and social statistics and analysis. We are committed to continued alignment with the highest international statistical standards, enabling comparability both over time and internationally, and ensuring the general public, statistical users and decision makers have the data they need to be informed.

Additionally, the Withdrawal Agreement outlines a need for UK gross national income (a fundamental component of the national accounts, which includes GDP) statistics to remain in line with those of other EU countries until EU budget contributions are finalised for the years in which we were a member, and making budget contributions during the transition period. To ensure this comparability during this period, the national accounts will continue to be produced according to European System of Accounts (ESA) 2010 definitions and standards until at least 2024.

As the shape of the UK's future statistical relationship with the EU becomes clearer over the coming period, we are making preparations to assume responsibilities that as part of our membership of the EU, and during the transition period, were delegated to the statistical office of the EU, Eurostat. This includes responsibilities relating to international comparability of economic statistics, deciding what international statistical guidance to apply in the UK context and to provide further scrutiny of our statistics and sector classification decisions.

In applying international statistical standards and best practice to UK economic statistics, we will draw on the technical advice of experts in the UK and internationally, and our work will be underpinned by the UK's well-established and robust framework for independent official statistics, set out in the Statistics and Registration Service Act 2007.

Coronavirus

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 on a new web page. This will be the hub for all special coronavirus-related publications, including the fortnightly Business Insights and Conditions 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.