Factory production in the U.K. strengthened in the second quarter of the year as increasing demand for exports boosted output, according to Bloomberg. On Monday, the Engineering Employers Federation reported that its gauge of output for the sector increase to 28 in the second quarter from a reading of 25 in the first three months of the year. The gain corresponded to a rise in the export index from 25 to 28 as well, while prices for domestic orders and exports dropped to 16 in the second quarter from 26, while the employment index slipped to 24 from 29 previously.
The chief economist of the EEF, Lee Hopley, said, “Our survey continues to show underlying strength in output and orders, adding, “Providing buoyant demand from overseas markets holds firm, we should see growth maintained through the rest of the year.” However, the upbeat data comes on the heels of a contrasting report from the Chartered Institute of Purchasing and Supply that showed manufacturing activity rose at the slowest rate in two years during May. The uneven data is expected to confirm the Bank of England’s position to against tightening fiscal policy at its next meeting.