GBP: Weak industrial production and trade data reported – TDS

By FXStreet FXStreet (Delhi) – Paul Fage, Senior Emerging Markets Strategist at TD Securities, note that today’s release of weaker UK industrial production and trade deficit numbers are pointing towards a slower GDP growth and it appears if the growth momentum is losing steam.

Key Quotes

“GBP Industrial production in the manufacturing sector for July came in at -0.8% m/m, onside with our call for a decline on the month, but significantly weaker than both our expectations of -0.1% m/m and the consensus forecast for a gain of 0.2%.”

“Beyond manufacturing, broader IP posted a second consecutive print of -0.4% m/m. We anticipate slightly less momentum in UK GDP growth in 2015H2, and this number would confirm that general direction.”

“The UK trade balance was also reported, with the visible trade deficit registering £11.1B in July, from a downward-revised £8.5B deficit in June (consensus: £9.5B). Exports of goods fell precipitously on the month (-9.5% m/m), with the decline principally concentrated in exports to the US, Switzerland, and China, and largely focused in the chemicals component, though some other manufacturing components such as passenger cars also fell sharply in July.”
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Source:: FX Street