UK industrial production likely flat in April

UK industrial production (IP) is expected to have been flat in April on a monthly basis, and up 0.5% y/y. IP was sharply higher in March, up 0.5% m/m, its highest level since 2011. However, it remains about 10% below the pre-crisis peak. 

Manufacturing, the largest component of IP, likely expanded at 0.2% m/m , according to Stasndard Chartered. The UK manufacturing PMI index fell sharply in April to 51.8 from 54.3. In May, it ticked up to 52.0, signalling positive but slow manufacturing-sector growth. 

According to Markit, the pound's strength versus the euro hit the competitiveness of British manufactured goods. Strong consumption goods orders reflect the consumption-led recovery. IP is likely to continue to expand at around 0.3% m/m in the medium term, said Standard Chartered in a report on Tuesday.