Britain Heading For Recession?
In April, UK factory production fell at the fastest pace in six years. The drop was due to weakened domestic and international demand. The data added to concerns about rapidly slowing economy and showed the biggest trade deficit for goods with the rest of the world in 2 years of 14.035 billion pounds ($18.76 billion). The Pound responded with decline of over half a cent versus dollar.
According to the ONS (the Office for National Statistics), manufacturing output dropped 1.4% mom in April on weaker electrical machinery and steel for infrastructure sectors. The broader measure of industrial output reduced 0.8%.
Construction output lifted 0.5% mom in April. The first quarter marked the worst performance for construction in 6 years. New construction orders dropped 4.6% qoq.
The Bank of England is now unlikely to execute a rate hike, as there should be an evidence of improving economy.