UK Posts Poor Production Activity Figures

The UK economy has been hit by a further blow, as the UK’s Office of National Statistics’ production output figures has decreased by 0.4% in the final quarter of last year, from the first quarter this year.

Manufacturing, the largest sector in the production base fell at the same rate quarter on quarter.

The 12.1% slide in the creation in coke and petroleum products, was the main reason for the manufacturing decline.

Total production output is also estimated to have decreased on a year on year basis by 0.2%, comparing March this year and last year.

There were decreases in two of the main four sectors, with the largest contribution coming from manufacturing, which decreased by 1.9%.

Month on month, there was more encouraging data, as production increased by 0.3% in March compared to the previous month.

Although there was disappointing news over the performance of the manufacturing sector, which only managed to rise by only a slender 0.1% margin in March, compared with February.

Transport equipment, which rose in activity by 2.7%, was the most impressive component of the manufacturing data.

Yesterday, it was revealed that the UK’s trade deficit was the worst it has been since 2008, and this followed poor purchasing manager index scores from Markit, in manufacturing, construction, and services.

While economic growth also fell by 0.2% in the first quarter of this year.

Despite this, then pound has not reacted badly in the GBP/USD rate, as sterling generally climbed against the dollar, up to falling following the release of the production outlet figures.

The pound is now buying $1.443, having reaching a nadir this morning GMT of buying $1.442, having peaked at buying $1.446 at the beginning of trading.

The US Bureau of Labor Statistics, reported that job openings in the United States was stable for March, but still boasts an impressive 5.8 million positions to be filled.

Turnover in German Manufacturing Down in March

Official figures have revealed that the turnover in the German manufacturing sector has fallen by 1.1% in March, when compared to February.

The estimate taken from provisional data on the sector, found that domestic turnover had decreased by 1.3%, while business with foreign customers also declined by a slower pace of 0.8%.

Manufacturing sales to other euro area countries was 0.5% down in March, which was still a more positive figure than the 1.1% fall in sales to other countries outside the single currency bloc.

The month on month figures for February from January, highlights that the latest results show a faster pace of turnover levels dropping, as turnover fell by 0.2% between those months.

Year on year, there was an increase of 0.7% in the amount of money created by manufacturing businesses in March.

Foreign transactions was the main reason why, as turnover with foreign customers spiralled upwards by 1.8%, mainly boosted sales to euro area countries which jumped up by 5.2%.

Although turnover with other foreign countries declined by 0.5%, and there was a decrease of 0.3% via domestic sales.

In the first quarter 2016,  turnover in manufacturing was 1.5% above the level of the same period of the previous year.

This was fuelled by domestic turnover, which  increased 1.3%,and foreign turnover that increased 1.6%.