U.K. Manufacturing Production Actual -0.1%, Expected -0.8%, Previous -0.3% (Revised from -0.9%)
U.K. Industrial Production Actual -0.6%, Expected -0.7%, Previous -0.7% (Revised from -1.0%)
Release Explanation: Measures the total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. “High production numbers usually denote an economy in an upwards trend, or growth period. These reports are reactive to change and are well respected.” TheLFB-Forex.com Trade Desk said.
TheLFB-Forex.com Trade Desk Thoughts: The U.K. manufacturing output decreased in March by 0.1%, compared with analyst expectations of -0.8%. From one year ago, manufacturing production fell by 12.4%. This was the slowest pace of contraction experienced in the last 13 months.
Output decreased in seven of the 13 sub-sectors and increased in five sub-sectors with one sub-sector remaining flat during the latest month. The most significant decreases in output were
3.9 per cent in the machinery and equipment industries and 1.5% iin the basic metals and metal products industries. The most significant increases on the month were 1.6% in the paper, printing and publishing industries and 3.7% in the other manufacturing industries.
A different report showed that industrial production dropped by 0.6%, less than the forecasted number. From one year ago, industrial output decreased by 12.9%.
TheLFB-Forex.com Trade Team stated that the “declines are in-line with the overall trend of the U.K. economy, and should not come as a surprise. Even though the numbers were better than expected, manufacturing output has contracted for 13 straight months”. The Trade Team also noted that in the three months to March, the manufacturing read recorded its steepest contraction since records first began, some 60 years ago.
Forex Technical Reaction: The pound gained 30 pips during the release. Previously, the pair advanced at a strong pace during the European session, gaining more than 140 pips, much more than the other major pairs.