Newly released UK industrial production figures for October have failed to meet foreign exchange market expectations.
Compared to September UK industrial production fell 0.2% while compared to the same period last year industrial production grew by only 3.3%. Economists had expected production to grow 4.0% year-on-year.
The newly released figures were not entirely negative though. UK manufacturing production in fact increased 0.6% in October compared to the previous month. Economists had estimated the increase would only be 0.3%.
Following the announcement sterling moved only a few pips on the foreign exchange market. This suggests investor attention is turned to the EMU situation, in addition to Bernanke’s comments recently that the US might face another round of quantitative easing.
Peter Lavelle, economic commentator with foreign exchange dealer Pure FX, said: ‘The newly released figures are disappointing. Last week manufacturing PMI results were strong and the markets were hopeful that industrial production numbers would reflect that. However we are pleased to see that following the release sterling has remained buoyant.’
By Chris Doane with foreign currency exchange dealer Pure FX.
