Industrial production in the United Kingdom rebounded in January as the Office for National Statistics reported monthly growth of 0.30% after having contracted the previous 2 months. The value came in higher than December’s -1.10% but missed expectations of 0.50%. The boost came specifically from manufacturing, climbing from the prior month’s revised value of -0.30% to 0.70% in January. Although a positive result, analysts anticipate that the rebound will be short lived with the sector facing pressure from shrinking global demand and weak energy prices impacting North Sea oil and gas production. Adding to the risks to the outlook is a possible exit from the European Union in June, potentially leading foreign manufacturers to relocate due to taxation issues. The Pound moved slightly higher versus the US dollar over the session, continuing its climb and reaching a price of 1.4240 before retreating.
New Zealand Cuts Rates to Fight Off Deflation
Daily Analysis - 10/03/2016