-WBP
UK manufacturing and industrial production data came in ahead of expectations for May, with both figures a big beat on the forecasts of economists. Manufacturing production decreased 0.5% on a monthly basis in May, down from April when it rebounded 2.3%, while the indicator came in at 1.7% on a yearly basis in the same month. Both readings beat the estimates of -1.2% and 0.6%, respectively. Overall industrial output fell 0.5% on a monthly basis in May, after a revised rebound of 2.1% seen in April. The reading did, however, beat the forecast of a negative 1.0%. On an annual basis, the gauge rebounded 1.4% in the fifth month of the year, while markets had bet on a 0.5% advance in the reported month. Industrial and manufacturing production show the volume of production in the UK's industrial and manufacturing sector, and the indicators have been volatile since the beginning of the year.
The data might look good, but, in general, both of them fell from a strong base in April, and that is before accounting for the potential crash as a result of the UK's vote to leave the European Union in June. Moreover, analysts expect the Brexit vote to have a profound influence on the country's economic performance not only in the months following the vote, but also in the years ahead.
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