Industrial production in the UK unexpectedly fell by 0.9% month-on-month in December 2025, defying market expectations of a flat reading and reversing an upwardly revised 1.3% gain in the previous month. This marked the first decline since September, as manufacturing output slipped (-0.5% vs 1.9% in November), weighed down by lower production in basic pharmaceutical products and preparations (-2.6%), food products (-1.4%), and chemical products (-5%). The overall drop was also driven by electricity, gas, steam, and air-conditioning supply (-1.7% vs 1%) and water supply, sewerage, and waste management (-2.4% vs -0.8%). Meanwhile, output decreased at a softer pace for mining and quarrying (-0.7% vs -0.9%). On a yearly basis, industrial output eased to 0.5% from 2.3% in the previous month, well below market expectations of 1.5% increase. For 2025, total annual production rose 0.2%, marking its first yearly growth since 2021.