Forex Flash: Expected manufacturing contraction in the UK due to Jubilee – Merill Lynch

FXstreet.com (Barcelona) - Knowing that the Queen's Golden Jubilee back in June 2002 made a negative impact in the manufacturing output, falling more than 5% over the month, Merill Lynch analysts expect a similar outcome for the Diamond Jubilee in June 2012: "Were it not for the Jubilee though, GDP growth could potentially have been slightly positive in our view - as suggested by the recent momentum in monthly hard data and the PMIs, for example", wrote analyst Nick Bate, expecting a 0.2% contraction in Q2.

"Jubilee effects should bounce back in Q3 though, indeed with the Olympics potentially providing an additional temporary boost to growth over the quarter too", Bate added.