FXStreet (Łódź) - James Knightley from ING comments on the UK manufacturing data released in the European morning, saying that the numbers for May are remarkably soft.

Key quotes

"Rather than rise 0.4% MoM as expected by the market, which seemed fully justified on the basis of the CBI industrial trends numbers and the manufacturing purchasing managers’ indices, it actually fell 1.3% MoM."

"This the biggest drop since January 2013 and was broad based with 10 out of 13 sub-sectors reporting falls in output. "

"Given that production industries account for 15.2% of the output approach to calculating GDP, this suggests that we may not necessarily see a pick-up in 2Q GDP growth to 1.0%QoQ as we expect, from 0.8% in 1Q14."

"However, we have our doubts on today’s number given the strength in hiring within the sector and the fact manufacturing confidence is up at 40 years highs and business order books are at such high levels according to key surveys."

" Consequently, we wouldn’t be surprised to see revisions and/or a strong bounceback in June."

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