UK Production Continues in Downward Trend
July 7, 2008
UK Industrial and manufacturing production numbers for May came in well below market expectations today, signalling further deterioration within the UK economy. Manufacturing Production dropped 0.5% m/m and total industrial production fell at its sharpest rate since October 2006, declining 0.8% m/m. The decline in industrial production was mainly driven by lower electricity, gas and water production during May. With the less volatile 3 month trend for both manufacturing and industrial production having dipped into negative territory, UK activity outlook looks bleak. Consequently the Pound lost nearly 0.4% against the dollar.