Deutsche Bank's analysts note that the UK’s manufacturing PMI slumped to 48.0 last month versus expectations for a 49.5 reading and is also a drop of-1.4pts from May and the lowest reading since February 2013.

• “The details showed that output fell and new orders remained in negative territory too. In fact, most of the sub-indices were lower with the associated text noting that “the stranglehold of sustained Brexit-related uncertainty and disruption also weighed heavily on business confidence and employment, as optimism ebbed to one of its lowest levels in the survey history”.
• Our UK economists noted that current levels are now consistent with prior BoE easing so this will likely increase the scrutiny of the BoE maintaining a tightening bias in the communication. We should also note that consumer credit data for May also slipped yesterday to £0.8bn. Sterling fell -0.46% yesterday while 10y Gilts ended -1.9bps lower.”