UK: May industrial and manufacturing production each fell back 0.5% - TDS

Research Team at TDS, notes that the UK’s May industrial and manufacturing production each fell back 0.5%, showing less of a drop than we and markets were anticipating.

Key Quotes

“Pharmaceutical products declined sharply as expected, but food production and coke & petroleum helped to offset some of this decline. Despite the fall in manufacturing in May, this leaves 16Q2 manufacturing growth on track for a roughly 2% Q/Q gain, again reinforcing that the UK economy, despite Brexit uncertainty, was actually on a decent footing ahead of the vote. 

Today also marks the second and final round of secret ballots in the Conservative party leadership race. Liam Fox was knocked off the ballot on Tuesday and Stephen Crabb pulled out voluntarily, so now MPs will vote to determine which 2 of the 3 remaining contenders will be put to Conservative party members to select the next leader and PM. We should get the results of the final ballot around 11:30am-12:00pm ET. And the full party voting will be done by postal ballot, with the result to be announced on 9 September.”