UK: Manufacturing is suffering from rise in Sterling – Investec

By FXStreet FXStreet (Delhi) – Research Team at Investec, notes that the UK Manufacturing output disappointed in October, falling by 0.4% on the month.

Key Quotes

“This came in lower than consensus and our own forecasts which means that the sector has posted a 0.1% year-on-year fall in October – an outturn that is consistent with our view that manufacturers are suffering from rises in sterling over the past two years, which has dampened competitiveness.”

“Meanwhile the broader industrial production measure rose by +0.1% on the month, in line with consensus. Within that, mining output grew by +0.9% on the month, while utilities output saw monthly growth of +0.7% while there were also small upward revisions to the back data for total industrial production, delivering growth of +1.7% year on year.”

“All told, the release does not have major implications for our view of overall economic activity in Q4 and market reaction was relatively muted. They do however serve as a reminder that manufacturers are not yet out of the woods.”
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Source:: FX Street