Other manufacturing industries also suffered a decline due to high energy prices

A recent report from the Office of National Statistics shows that there has been a dramatic decline in the output from the UK’s energy -intensive industries.

Summary of Decline 2021 to 2024

• The real output of British energy-intensive industries fell sharply by 33.6% between Q1 2021 and Q4 2024, according to the Office for National Statistics.
• This contraction is significantly steeper than the decline in other manufacturing sectors, which also saw a fall of 6.2% over the same period.
• The output of UK foods and beverages manufacturing, which also faces high energy input costs, declined by 3% in this timeframe.

Industry Breakdown

The ONS identifies four key energy-intensive manufacturing groups most affected:

• Paper and paper products: Output down by 28.9%
• Petrochemicals: Output down by 30.2%
• Inorganic non-metallic products (e.g., concrete, cement , glass, and ceramics): Output down by 30.6%
• Basic metals and castings: Output down by 46.5% — the steepest decline among the groups1.

Historical Context

• The current output of UK energy – intensive industries is at its lowest level in 35 years, with the Q4 2024 Index of Production for these industries at its lowest point since at least 1990.

Previous major declines were associated with events like the 2008–2009 global financial crisis, but the recent drop is directly linked to rising and persistently high energy prices.