UK manufacturing PMI: Upside risks to May's figure - TDS

In the view of the TD Securities (TDS) analysts, the UK manufacturing PMI data is likely to rise in May amid a bounce back in the auto sector production.

Key Quotes:

“The auto sector remains the big question mark for May production, as auto production in April was down 45% y/y on early shut-downs due to the (original) Brexit deadline.

That likely led to some of last month's sizeable PMI decline, and could pose upside risks to May's figure if production bounces back as shutdowns end.

We therefore look for a gain to 54.0 (mkt: 52.4) but note that abstracting from the auto sector, the risks point to a further deterioration in the indicator.”