UK industrial production rebounded by 2.9% M/M in July, almost twice the expected pace. The details show that strength was wide-spread with strong gains in manufacturing (3.2% M/M), mining & quarrying (4.9% M/M) and oil & gas (5.7% M/M). The strong rebound comes however after very weak June data, when production fell by 2.4% M/M, due to the extra holiday for the Queen’s Jubilee and very poor weather. So the rebound is mainly a reversal of the previous month’s decline due to special factors. Overall however, UK production continues to struggle as the annual rate is down by 0.8% Y/Y and also the outlook remains bleak as the downturn in the euro area will probably continue to weigh on exports.