10 Jun 2015
UK industrial sector expected to improve in the next periods – ING
FXStreet (Edinburgh) - Analyst James Knightley at ING reviewed the recent UK industrial/manufacturing figures and expects their performance to improve in the next months.
Key Quotes
“The UK industrial production report is decent, rising 0.4%MoM versus the consensus 0.1% forecast, but the mix is a little disappointing”.
“Manufacturing output fell 0.4%MoM versus the market forecast of a 0.1% rise, but there was surprise strength in mining and quarrying (+5.6%MoM) and oil and gas drilling, which jumped 8.7%MoM. Electricity and gas utilities output fell 3.3%MoM while water services rose 0.9%MoM”.
“The manufacturing weakness is at odds with business surveys, such as the purchasing managers’ index, which hasn’t reported a contraction since February 2013. Manufacturing output, according to official estimates, is only up 0.2%YoY”.
“Admittedly, the strength of sterling is making the competitive environment tougher internationally for manufacturers, but the improving Eurozone growth outlook should be providing offsetting support given half of all UK exports go there”.
“Add in the improving domestic growth story and we think the manufacturing numbers will get better in coming months”.
Key Quotes
“The UK industrial production report is decent, rising 0.4%MoM versus the consensus 0.1% forecast, but the mix is a little disappointing”.
“Manufacturing output fell 0.4%MoM versus the market forecast of a 0.1% rise, but there was surprise strength in mining and quarrying (+5.6%MoM) and oil and gas drilling, which jumped 8.7%MoM. Electricity and gas utilities output fell 3.3%MoM while water services rose 0.9%MoM”.
“The manufacturing weakness is at odds with business surveys, such as the purchasing managers’ index, which hasn’t reported a contraction since February 2013. Manufacturing output, according to official estimates, is only up 0.2%YoY”.
“Admittedly, the strength of sterling is making the competitive environment tougher internationally for manufacturers, but the improving Eurozone growth outlook should be providing offsetting support given half of all UK exports go there”.
“Add in the improving domestic growth story and we think the manufacturing numbers will get better in coming months”.