UK industrial production fails to sustain the strength seen in April

According to the latest figures from the Office of National Statistics on Tuesday, UK's manufacturing sector performed well below expectations in June, while industrial production was in line with expectations. Data showed that UK industrial production grew by 0.1 percent in June, well above the 0.6 percent fall in May, and in line with forecasts. Manufacturing production missed expectations, falling 0.3 percent, against the 0.2 percent fall forecast. That was slightly better than the 0.6 percent fall seen in May.

On a year-on-year basis, manufacturing production grew 0.9 percent against a forecast of 1.3 percent, while industrial production grew 1.6 percent, as forecast. It is worth noting that the data was largely compiled before the UK's vote to leave the European Union. Uncertainties in the run-up to the referendum seem to have had little impact on production.

"Overall, we remain of the view that UK industrial production and manufacturing remains a cause for concern; we believe this is driven by a structural lack of competitiveness as well as government policies, only to be amplified by prolonged uncertainty regarding the UK and its trading relationships with the EU and the rest of the world,” said Barclays in a report.