Upbeat Jan UK manufacturing production data sets tone for a slightly better 2016

Data released from the Office for National statistics on Wednesday painted a mixed picture of the UK economy. UK manufacturing production showed a 0.7% m/m bounce, beating expectations for a 0.2% m/m rise.

However pickup in manufacturing activity was offset by a 6.3% slump in oil and gas production, which dragged down overall industrial performance. UK industrial production rose 0.3% in January on the previous month, up from the sizeable 1.1% decline in December but short of consensus forecasts of 0.4%.

"After experiencing the largest monthly fall in three years in December, UK industrial production started 2016 on a slightly better footing. The manufacturing bounce-back potentially set the scene for a slightly better 2016 after contracting over 2015 as a whole." observed Scott Bowman at Capital Economics.