The UK industrial production fell by 0.4% mom in August, surprising economists and markets. In industry, which has the greatest weight in the index, is recorded growth of 0.2%. In July there was an increase of 0.1% for the whole industrial production. Compared with August 2015, industrial production grows by 0.7%, which was worse performance than expected growth against 1.3%. The growth is slowing down compared to July, when it was recorded an increase of 2.1%.
Although official figures for the UK economy after the referendum on 23 June are still scarce, published this week index for the presentation of the dominant services sector suggests that GDP in the third quarter likely rose by 0.4%. FT points out that official data lag a few months Purchase Managers Index (PMI) for September that came out this week.
The latest data on industrial production is unlikely to support the GBP, which this week was once again under pressure after Prime Minister Theresa May announced that by the end of March 2017 will activate Article 50 of the Lisbon Treaty. Then the UK will have two years to actually leave the European Union. While renewed speculation that authorities in London plan called. hard or sharp exit (Hard Brexit), which implies limited access to the UK to the EU single market.
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