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Further Weakness In UK Manufacturing

James Boston
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Further Weakness In UK Manufacturing

The National Statistics Office has just published a broad update for the UK’s industrial and manufacturing sector. The headline Manufacturing Production number has just been released for June, this year on year reading is now showing an increase of just 1.9% for this key UK sector, the May return was 3.7% and market consensus was for a reading of just 2.1% today. The month on month number has come in at 0.3%, this is in contrast to the -1.3% contraction experienced the previous month, markets had been anticipating a reading more in the region of 0.6% from today’s data.

The wider encompassing Industrial Production data, which also includes activities such as mining, has mirrored the trend in the Manufacturing number. The headline reading for June on this metric is showing a 1.2% increase year on year, this is in comparison to the May print of 2.3% and the market’s consensus estimate of a 1.5% pick up. On a month on month basis the Industrial number is up 0.3% compared to a fall of -0.7% the month prior and a market consensus estimate for a 0.6% up tick.

While the manufacturing sector of the British economy is re-claiming it’s place as a key growth engine the housing market is continuing to provide trouble for the UK’s economic managers. This morning’s Halifax House Price Index produced a reading of 10.2% year on year growth to the month of June, this follows on from May’s elevated 8.8% growth but has not quiet hit the market expectation for a 9.6% reading. Month on month the House Price Index has risen 1.4%, this is in contrast to the slight easing up in May when this perpetually rising Index experienced a rare bit of relief by falling back -0.4%, the market expectation however was for this month’s number to reverse the fall at around 0.4% growth.

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