Index of Production, UK: January 2021

• Monthly production fell by 1.5% in January 2021 meaning it was 5.0% below its level in February 2020, the last month of "normal" trading conditions prior to the coronavirus (COVID-19) pandemic.

• The decline in production was driven by falls of 2.3% in manufacturing and 0.7% in mining and quarrying; these were offset partially by a rise of 0.9% in electricity and gas and 1.2% in water supply and sewage.

• The 2.3% fall in manufacturing means it was 5.7% below its level in February 2020; the fall in manufacturing over the month was driven by lower output in 9 of the 13 manufacturing subsectors, the largest being the fall in manufacturing of transport equipment.

• Production output for the three months to January 2021 grew by 0.7% compared with the three months to October 2020.

• Production output for the three months to January 2021 fell by 4.1% compared with the three months to January 2020.

• The coronavirus pandemic had a significant negative impact on production output last year and during January 2021; 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: January 2021, published 12 March 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.

End of EU exit transition period

As the UK enters into a new Trade and Co-operation 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, the Office for National Statistics (ONS) is 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. Further information on our proposals will be made available later this year.

Coronavirus (COVID-19)

The 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 affected 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 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.