UK: Manufacturing production fell much larger than expected - TDS

Research Team at TDS, notes that UK’s production in the manufacturing sector fell by a much larger than expected 1.1% in February.

Key Quotes

“The weakness was broad-based, with declines in 11 of the 13 sub-sectors, with the transportation equipment category seeing the biggest decline (-2.9% m/m). The only categories to increase were the pharmaceutical and electrical equipment categories.

The broader industrial production measure fell 0.3% m/m (consensus: 0.1%). While the release did not mention it specifically, the February and March manufacturing PMI surveys did note uncertainties about the upcoming EU Referendum, and this likely weighed on output in the month. This comes against the fact that sterling has depreciated by more than 10% since November, which should really be helping boost activity in the sector.”