A mixed outcome from the UK industry: industrial output rose 0.1% as expected but y/y it rose 1.7%, above expectations. Manufacturing production missed with a monthly drop of 0.4% and a yearly drop of 0.1%, but these were cushioned with upwards revisions.
GBP/USD is bouncing off the lows of 1.50 and stabilizing around 1.5015.
The UK was expected to report no change in m/m industrial output and manufacturing production. On a yearly basis, industrial output carried expectations of advancing from 1.1% to 1.2% and manufacturing production from -0.6% to +0.1%.
GBP/USD was on the back foot, falling towards 1.50.
The manufacturing sector is no the strongest in the UK, as seen by consistently low PMIs.
The better than expected PMI for the services sector allowed the pound to recover last week after being hit by the other figures. Later this week, we’ll hear from the Bank of England.
While no rate hike is on the cards this time, the meeting minutes will likely show where the wind is blowing.
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