UK Industrial Output Slides in August

The fall in Industrial output was the result of factory shutdowns and oil and gas plants annual maintenance. It is still unclear how sound the recovery of the British economy is at this point and could force the Bank of England to maintain its rates at current levels (0.5%)

Manufacturing output fell by 1.9 per cent in August, according to the Office for National Statistics. Most economists had expected a rise of up to 0.3 per cent.

The falls came after a 0.5 per cent rise from June to July.

Overall production output, which includes energy production, fared even worse, falling 2.5 per cent in the month to its lowest level since 1987.

The biggest fall, of 7.3 per cent, came from the oil and gas extraction industries, the largest monthly fall in this sector for a year, as refineries were shut for planned maintenance, ONS said.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza