UK DATA: Jul manufacturing output +3.2% m/m; -0.5% y/y
-Jul industrial production +2.9% m/m; -0.8% y/y
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Manufacturing bounced back sharply in July following the Jubilee
led downturn in June, a sign that GDP is set to bounce back in Q3. The
data, which were far stronger than forecast, puts trend growth in
manufacturing back in positive territory, suggesting the sector is
faring better than many had thought. Given the erratic data over the
Jubilee period, however, we need to see a couple more months of data to
gain a better picture of the state of the sector. Manufacturing output
rose 3.2% on the month in July, the strongest rise since July 2002 and
was down 0.5% on the year. This was way above the median forecast for a
gain of 1.8% on the month and decline of 2.5% on the year. Output in
June was depressed by the Queen’s Jubilee celebrations with the two Bank
holidays during the month cutting the number of working days.