UK manufacturing production rises 0.1% and industrial production stays flat, slightly below expectations. Year over year, manufacturing rose 3.9% and industrial output 2.5%.
Manufacturing output in the UK was expected to rise by 0.2% in August, after 0.3% in July (before revisions). The wider industrial output carried expectations for a rise of 0.2% after 0.5% beforehand.
GBP/USD continued its recovery, riding on USD weakness and was just below 1.16080 towards the publication.
At the same time, the Bank of England’s Credit Conditions Survey was released. It showed that mortgage availability dropped in the third quarter, for the first time sine 2012.
The manufacturing sector has been one of the weaker links in the UK economy of late. Last week’s PMI showed a super strong construction sector, an OK services sector and a hardly growing manufacturing one.
Later today, we will get a fresh GDP estimate from NESR. For the three months ending in August, growth stood on 0.6% according to this institution. The BOE meets later this week for its monthly rate decision, and a change in policy is probably off the agenda.
For more, see the GBP USD forecast.
