U.K. Manufacturing and Industrial Outputs Disappoint, Industrial Orders Hit 9-Month High

U.K. manufacturing production for October crossed the wires weaker than expected, with outputs hold flat during the month after rising a revised 1.3% in September, with economists’ expectations of 0.5%, providing a reading that the economy may have shaken off the longest recession on record but at a slow pace. At the same time, the annualized reading plunged 7.8% amid forecasts for a 7.2% decline after falling a revised 9.8% in the month prior, with the breakdown of the report illustrating basic metals and metal products plunged at an annualized 15.7% to lead the downturn in manufacturing. Meanwhile, industrial production held flat during the same period from a revised reading of 1.3% the month prior, while slipping 8.4% on an annual basis. Moreover,  the CBI December Industrial Trends index rose to an 9-month high of -42 from -45, while exports orders advanced to -41, the U.K. Office for National Statistic said. Looking ahead, as exports rebound, factory production should continue to develop next year as the Engineering Employers Federation reported yesterday, and as a result the Bank of England is widely expected to keep its bond purchase program of 200 billion pounds and hold interest rates at its current low of 0.50% in order to encourage a sustainable recovery.

Manufacturing Monthly Chart