UK manufacturing output falls -0.1% in March

The UK manufacturing output falls -0.1% over the month in March, in line with market expectations.
The UK industrial production rises 0.1% over the month in March.

Mario Blascak, PhD Independent Analyst

The report from the Office for National Statistics said that there has been no evidence that the heavy snowfall in March 2018 had no significant impact on manufacturing output.

When compared to a year ago, both the UK manufacturing output and the index of industrial production rose 2.9% y/y, accelerating from 2.5% y/y and 2.1% y/y respectively in the previous month.

The manufacturing output report also said that the Index of Production estimate for the first quarter of 2018 was revised down by 0.1% from the increase of 0.7% originally published in the preliminary estimate of the Gross domestic product in combination with the publication of the Construction output. The headline GDP growth rate has not been impacted to one decimal place.

The slowdown in the UK manufacturing was indicated by the manufacturing PMI that decelerated sharply in both March and in April. According to manufacturing PMI report from IHS/Markit, the UK manufacturing activity gauge fell to 54.9 in March and decelerated further to 53.9 in April. The manufacturing PMI for April was at the lowest level in last 17 months.

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold holds steady below $4,500; looks to US NFP for fresh impetus

Gold consolidates its strong gains recorded over the past two days and trades below $4,500 during the Asian session on Friday, awaiting the US NFP report for cues about the Fed's policy path amid reduced September rate-hike bets. In the meantime, the recent fall in US bond yields keeps the US Dollar depressed and acts as a tailwind for the non-yielding bullion.

Bitcoin and Gold Outlook: BTC and XAU recover as US ISM Services PMI edges higher in August

Bitcoin (BTC) strongly rises to trade above the pivotal $80,000 level on Thursday. The Crypto King is rallying alongside broader cryptocurrency prices following the release of the United States (US) Services PMI. Gold (XAU/USD) is similarly bullish, trading at $4,500 at the time of writing. The metal is up over 2% on the day, signaling the return of bulls as market sentiment improves.

Canada's 6.4% unemployment rate: Why Friday's jobs print puts the BoC's slack story on trial

The Bank of Canada (BoC) held at 2.25% on Wednesday for a seventh straight meeting and rewrote the one paragraph that still argues against a hike. In July, the BoC’s statement called the labour market soft and pinned the unemployment rate inside a 6.5%-7% range it had held since the end of 2024. July's Labour Force Survey (LFS) then printed 6.4%.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.