Pound Slides On Disappointing U.K Industrial Output

The pound weakened for the first time in three days versus the euro as a report showed U.K. industrial production grew less in March than analysts forecast, adding to signs that Britain’s economy is suffering as it heads toward a referendum on its membership of the European Union.

Sterling fell against most of its 16 major peers Wednesday as figures from the Office for National Statistics showed output rose 0.3 percent, less than the 0.5 percent gain predicted in a Bloomberg survey of economists. Factories increased production by 0.1 percent, also less than forecast.

Even after a rebound in the past month, the pound is still the worst performer this year among currencies of Group-of-10 nations, weighed down by weak economic data and concern that the U.K.’s possible exit from the trading bloc will further derail investment. Reports last week showed manufacturing, construction and services industries all trailed economists’ predictions.

The pound weakened 0.3 percent to 78.99 pence per euro as of 9:55 a.m. in London, after strengthening 0.4 percent in the previous two days. Sterling fell 0.2 percent to $1.4418.

Bloomberg

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.