UK Production in Surprising Boost

The latest figures from the Office of National Statistics on UK production has confounded expectations, by revealing a 2% climb in total output for April month on month.
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Many analysts believed that the level of production, would follow many recent releases of negative data on individual sectors in the UK economy.

And the growth figures for the first quarter year falling to 0.4%, compared to 0.6% for the final three months of 2015, with a looming possible exit from the European Union a major reason for why growth cooled.

Compared to March, there were increases in 3 of the 4 main economic sectors, with the most significant contribution coming from manufacturing, which increased by 2.3%, the largest rise since July 2012.

The annual production output for April was 1.6%, where there was increased from all of the major sectors, where again manufacturing contributed the most, with a growth hike of 0.8%.

Although when comparing the manufacturing sector for the first quarter this year, it fell by 0.9% in contrast to the same period in 2015, but production in total was 0.5% higher.

 Germany Manufacturing Turnover Increase

Official data from Germany has revealed that the manufacturing sector saw its  turnover rise in real terms by 0.8% in April, in contrast to the figures from March.

The figure represents a turnaround in fortunes compared to the numbers between March and February, where the turnover decreased by 0.7%.

The main areas where the turnover increase can be attributed to, are that domestic revenue increased by 0.2%, and  business with foreign customers was 1.5% higher.

Sales to euro area countries were 0.5% above the previous month, while sales to other countries went up 2.1% compared to March.

Annual turnover in manufacturing also highlighted that activity in the sector in Germany is accelerating, as year on year for April manufacturing income grew by 0.9%.

Sales to domestic as well as to foreign customers increased  by 0.9%, compared to April 2015.

Among foreign transactions, sales to euro area countries increased by 4%, whereas  turnover with other foreign countries declined by 1%.

In the first quarter of 2016, manufacturing secured 1.4% more business compared to the same time last year, as domestic and foreign turnover increased by 1.3%, and  1.5% respectively.

Euro and UK Pound Consolidate Against Dollar

The euro and sterling have both been firm against the US dollar this morning, continuing the trends from yesterday.

Sharp gains made by the pound yesterday were largely handed back to the greenback, as speculation over incorrect ‘fat finger’ trade lingered.

Currently the pound is buying $1.45, the level its has stayed at since yesterday evening.

The pound also managed to consolidate its position, as an ORB opinion poll contradicted some other recent surveys, which revealed that the leave the EU campaign was gaining momentum.

The poll found that 52% would stay in the EU, compared to 40% who wished to leave, with 7%  yet to decide how they will vote.

Due to the better than expected 0.6% month on month growth figures that emerged from the euro area yesterday, the euro has steadily  risen to buying $1.13, without making exceptional gains.

FC Exchange analyst Daniel Wray, wrote in his daily round up, that the trickle effect from improved jobs data from the euro area, low oil prices and ultra-low interest rates seems to finally be filtering through.

He also warned that major concerns still lie as the US, China, UK, Turkey and Russia are suffering from local domestic weaknesses.