U.K. industrial output rises sequentially in September

U.K.’s industrial output has risen in recent months after struggling to grow in the first half of 2017. The U.K. industrial production rose 0.7 percent sequentially, the steepest rise in 10 months. Manufacturing production also grew 0.7 percent in sequential terms and was the main driver, as output in machinery and equipment and computer and electronics sectors rose markedly. Mining and quarrying also contributed notably. In the third quarter as a whole, the U.K industrial output grew 1.1 percent sequentially, a slightly higher rate than the ONS estimated at the time of the preliminary third quarter data release.

In the meantime, similar figures from the construction sector were also released, implying that output dropped 1.6 percent sequentially in September. Construction sector growth has been quite disappointing since the start of the second quarter, despite the fact that new housing sector output has performed well in recent months.

“So while today's figures differ from the growth rates penciled in the released Q3 GDP data, on balance they will have only a negligible impact on the headline growth, which was estimated at 0.4 percent Q/Q”, noted Daiwa Capital Markets.

At 20:00 GMT the FxWirePro's Hourly Strength Index of British Pound was neutral at 44.5925, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -40.4657. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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