UK Manufacturing data stays resilient despite economic headwinds
Despite headwinds of growth projections for the UK this morning showed how resilient certain UK sectors are, with Industrial Production posting 0.5% growth and Manufacturing recording 0.1% higher than May figures.
Brexit pressures are still weighing on Mr Carney as exemplified in his recent Bank of England Minutes last week, but some solace should be taken as many PMI and Output figures are holding strong, recording figures higher than economists forecast. Markets are aware negotiations are thus far negligible for the UK’s exit and growth will be lower than hoped this year and perhaps next, but the direct impact is not as severe as first feared. Sterling has found support above 1.3000 crucially against the dollar with the bigger market shock factoring in GBPEUR languishing around 1.1000 – this is however, a euro story and not Sterling weakness specifically. If Inflation can be capped close to 3% in the coming months, there is no reason why the Central Bank can’t begin to sway towards further dissenting voters and look for an early 2018 interest rate hike.
UK manufacturing fell in June, dragging industrial production lower
Alex Lydall quoted in CityAM