FXstreet.com (Barcelona) - UK manufacturing and industrial production numbers for June fell considerably less than expected (on a monthly basis -2.9% and -2.5% respectively), which means that “GDP is likely to be revised up towards -0.6% QoQ from -0.7%,” as James Knightly from ING says.
Still, he believes that in the face of the slowdown in global growth as well as the worsening of the EU crisis the sector will remain “a drag on overall activity.”
According to the analyst “with the Bank of England likely to downwardly revise both its growth and inflation forecasts in tomorrow’s Inflation Report, we expect to see a further round of quantitative easing in November given the new funding for lending scheme will need time before its effectiveness can be assessed.”
Still, he believes that in the face of the slowdown in global growth as well as the worsening of the EU crisis the sector will remain “a drag on overall activity.”
According to the analyst “with the Bank of England likely to downwardly revise both its growth and inflation forecasts in tomorrow’s Inflation Report, we expect to see a further round of quantitative easing in November given the new funding for lending scheme will need time before its effectiveness can be assessed.”
