Production rose 0.3 percent in March, less than 0.5 percent forecast in a Reuter survey conducted before the release, while factory production increased by 0.1 percent, the data from the Office for National Statistics showed its less than 0.4 percent expected.
“We doubt that the economic recovery can count on support from the industrial sector over the coming quarters,” said Sam Tombs, an economist at Pantheon Macroeconomics in London.
U.K. manufacturing sector have been hard hit by global slowdown, a report released by Markit Economics this month showed the sector contracted for the first time in three years in April. Construction sector expanded 52 in April, but below the 54 expected by economists, this figure further casts doubt on U.K. economic sustainability ahead of the referendum.
Industrial output fell 0.4 percent in the first quarter of the year, making it the second consecutive quarterly decline. The uncertainty of the U.K. economy is expected to subside after the June 23 referendum of European Union membership.
The pound declined 0.2 percent against the dollar as at 10:28 a.m. in London, bringing its total losses to 5 percent in the last 6 months.
Electricity and gas sector output rose 3.3 percent in the month, the ONS attributed this to colder temperatures and the increased use of gas in electricity generation.