UK’s manufacturing output declines in October, industrial output better than expected

By FXStreet FXStreet (Mumbai) – The Office for National Statistics today reported a fall in UK’s manufacturing output for October. Manufacturing output was expected to stagnate in October. It fell 0.4 per cent month on month, lower than September’s 0.9 per cent increase. Manufacturers have been particularly hurt by low oil prices. Year on year comparison shows manufacturing output came in 0.1 per cent lower than the same period last year, once again falling short of 0.1 per cent rise estimated. Manufacturing output remains around 6.1 per cent below the level that it had reached when at peak. Today’s manufacturing data dims hope that this sector will contribute to raise over all growth in this fiscal.

A survey published on 19th November showed British manufacturers expect their output will fall in the coming three months, the first such decline in three years. The Confederation of British Industry also mentioned that expectations for manufacturing output over the next three months worsened to -6 from +5 in October, the first prediction of a fall since November 2012.

Today’s data spells bad news for the BoE which will meet this Thursday to take interest rate related decision. The Monetary Policy Committee is expected to leave borrowing …read more

Source:: FX Street