UK Industrial Output rises again
Having now had the figures in, we can confirm our view that the UK will continue to offer strong returns for investors. Confirming this is the industrial production figures released today that show the United Kingdom rose again for a third month in April, driving the annual increase to the biggest since 2011. Output rose 0.4 percent from March, when it gained a revised 0.1 percent matching median estimates.
Industry surveys indicate the economy continued to expand this quarter, with Markit Economics saying last week that its gauges show Britain is on track to grow 0.8 percent. Some Bank of England officials have said their decision to keep the benchmark interest rate at a record-low 0.5 percent is becoming “more balanced” as the recovery gathers pace.
The pound was little changed against the dollar and traded at $1.6809 as of 9:35 a.m. London time. While Britain’s economy has strengthened over the past year, today’s data showed industrial output remains 11.3 percent below where it was when GDP peaked in the first quarter of 2008, while manufacturing is 7 percent lower indicating that we are not yet up to full speed but heading in the right direction.