UK manufacturing output increased in July even as wider production weakened over the latest three-month period, according to new figures from the Office for National Statistics.
Manufacturing grew by 0.5% in the three months to July 2026 compared with the three months to April, partly offsetting falls elsewhere in the production economy. Overall production output declined by 0.5% over the same period, its first three-month-on-three-month fall since November 2025.
Three of the four main production sectors contracted over the quarter. Water supply and sewerage fell by 4.0%, mining and quarrying declined by 2.6%, and electricity and gas output was down 1.5%. Manufacturing was the only main sector to record growth.
The monthly picture was firmer. Total production output rose by 0.2% in July following falls of 0.2% in June and 0.7% in May, while manufacturing output increased by 0.9%. Water supply and sewerage rose by 2.0%, but mining and quarrying dropped by 4.4% and electricity and gas fell by 1.5%.
Eight of the 13 manufacturing subsectors increased output during July. Computer, electronic and optical products made the largest positive contribution with growth of 5.2%, followed by basic pharmaceutical products at 3.4% and basic metals at 2.8%. The gains were concentrated in several technically intensive parts of manufacturing rather than spread evenly across the sector.
On the broader three-month measure, seven of the 13 manufacturing subsectors expanded. Computer, electronic and optical products again made the strongest positive contribution, rising by 3.9%, while basic metals made the largest negative contribution with a fall of 1.2%.
The contrast between the monthly and three-month readings for basic metals shows how quickly a volatile subsector can change direction without immediately altering the wider trend. July’s 2.8% monthly rise followed enough earlier weakness for output still to be lower across the quarter.
August manufacturing survey data showed factory employment increasing at its fastest pace in more than two years even as overall expansion slowed. The ONS figures cover July rather than August, so the two measures are not directly comparable, but both point to uneven conditions rather than a uniform recovery across British industry.
Official production data also measure something different from business surveys. The Index of Production is based mainly on turnover information collected through the Monthly Business Survey, adjusted to remove price effects, alongside direct volume estimates for some industries. It covers manufacturing, mining and quarrying, electricity and gas, and water and waste management.
The series is therefore more closely tied to estimated physical output than confidence indicators, although early monthly figures remain subject to revision. At detailed subsector level, individual plant shutdowns, maintenance periods, contract timing, and large orders can also create sharp movements that do not persist.
July gives manufacturing a stronger monthly starting point after two consecutive falls in overall production. Electronics and optical products, pharmaceuticals, and basic metals all made sizeable positive contributions, while the aggregate manufacturing index rose despite weakness in energy and extraction.
Energy and utility output can feed back into industrial conditions through prices and supply, particularly for energy-intensive production. A manufacturing increase alongside falling electricity, gas, and extraction output therefore describes a mixed production economy rather than a simple expansion cycle.
The data also arrive before a wider revision of the historical series. The ONS said the July bulletin introduced figures for the latest month without reopening earlier periods, but the October publication will allow revisions across the full time series as part of the annual UK National Accounts process.
An indicative revised monthly path is due alongside the Quarterly National Accounts on 30 September, followed by the next full Index of Production release on 15 October. Those updates will show whether July’s manufacturing increase survives revision and whether the stronger monthly performance carries into the next reporting period.
The official picture remains split: manufacturing output is growing on both the monthly and latest three-month measures, while the wider production economy is weaker. The strongest July gains came from electronics, pharmaceuticals, and metals, leaving the next figures to show whether that improvement broadens or remains concentrated in a handful of subsectors.
