UK's manufacturing production likely to show a reversal in October

UK's manufacturing production mom for the month of October is expected to show a reversal of 0.2% by the consensus, while the manufacturing production yoy is likely to be 0.0.

The fundamentals likely supported a positive trend, however there were mixed signals from the CBI and PMI surveys. In September, the manufacturing output fell by 0.6%, when compared with the same period in previous year. This is primarily due to machinery and equipment, which dropped by 13.7%.

However, when comparing September 2015 with August 2015, manufacturing production is estimated to have increased by 0.8%, the largest monthly rise since April 2014.

"..we think the 1.2% increase takes the level of output above that weak trend and thus we expect a reversal of 0.3% in manufacturing output in October", says Societe Generale in a research note.