UK witnesses unexpectedly strong industrial output - BBH

Research Team at BBH, notes that today we witnessed unexpectedly strong UK industrial output report as the market had expected a flat report in April, in part due to the below 50 reading of the manufacturing PMI.

Key Quotes

“Instead, UK industrial output jumped 2.0%, the biggest increase in four years.  Manufacturing production itself rose 2.3%.  Pharmaceutical output surged 8.6%, and auto production (ostensibly for domestic demand) rose.  There was a 3.9% rise in gas and electricity production, though oil and gas extraction fell 1.3%.   

The UK referendum is overshadowing the economic data.  The local press is not leading with last night's Cameron/Farage interviews.  The media focus is escalating.  It may take a few days for the polls to detect the impact.  We suspect that at this juncture, more of the same rhetoric is unlikely to change many minds.”