Global Newsbrokers Forex Service
Lunchtime review at 11:20:01
WEAK UK OUTPUT CONFIRMS RATES ON HOLD
Thursday, January 13
Any lingering suspicions that UK
interest rates could rise today will
have been dispelled by yet another
weak manufacturing output report.
Output fell by 0.1 per cent in
November compared with expectations
for a 0.3 per cent rise, representing
the fifth consecutive monthly decline.
This leaves the sector very close to
recession, technically defined as two
consecutive quarters of decline.
Output in Q3 fell by 0.8 per cent and
a soft figure for December would
confirm a contraction in Q4.
Meanwhile, overall industrial
production rose by 0.2 per cent, just
half the amount anticipated.
Elsewhere, figures for German 2004 GDP
have revealed growth of 1.7 per cent.
Interestingly, growth accelerated in
Q4 due to increased exports, a trend
that coincided with the surge in the
euro.
However, Germany's budget deficit once
again failed to meet the Stability
Pact criteria for the third year
running, coming in at 3.9 per cent of
GDP.
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