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.
Trade Desk Thoughts: The U.K. manufacturing output decreased in December by 2.2%, compared with analyst expectations of -1.3%.
Output decreased in 12 of the 13 sub-sectors and increased in one sub-sector during the latest month. Within the widespread decreases on the month, the most significant decreases were 4.3% in the basic metals industries and 5.0% in the machinery industry. Manufacturing output is down for eleventh consecutive month, the longest streak since 1980. There were no significant increases during the latest month.
A different report showed that industrial production dropped by 1.7%, more than the forecasted number. Mining and quarrying output decreased by 0.4%, wile energy supply output increased by 0.9%.
Forex Technical Reaction: The pound fell 30 pips after the news report. Previously, the pair bounced off TheLFB R1 (1.4775), and fell nearly 90 pips lower, close to the Asian opening price.