U.K. April production data disappointed, with the headline industrial output figure coming in with 0.2% m/m growth, up from the 0.5% m/m contraction seen in March, but off the median forecast for 0.7% m/m growth. The y/y figure contracted by 0.8%, which is the first negative y/y print in six months and came contrary to the median forecast for a 0.3% expansion. The contraction follows 1.4% y/y growth in the previous month.
Narrower manufacturing production data also underwhelmed, coming in at 0.2% m/m after -0.6% m/m in March but off the median forecast for 0.8% m/m growth. The y/y manufacturing output figure was flat after 2.2% y/y growth in the month prior, and down on the median for 0.7%. U.K. trade data for April, meanwhile, showed the total deficit shrinking to GBP2.1 billion from GBP3.9 billion in March. Overall, the data is disappointing. Sterling edged a bit lower, although fallout from the election result is the dominating preoccupation for market participants.