UK Industrial Production & The Euro Both Falling!

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UK industrial output fell by 0.1% in January compared with a month earlier, official figures have shown.

The Office for National Statistics (ONS) also reported that manufacturing output fell by 0.5% in January from December.

The biggest fall came from the computer, electronic and optical sector where output dived 9.5%, the biggest monthly fall since 2002, the ONS said.

Over the year, industrial production and manufacturing rose 1.3% and 1.9%.

The ONS said UK oil and gas production recovered in January, rising 2.4% compared with a month earlier helped by increased production at North Sea oil and gas fields.

The ONS said, in the three months to January industrial production and manufacturing remained 10.4% and 4.8% below their pre-recession peak.

l The euro has fallen to its lowest level against the US dollar in 12 years after the European Central Bank (ECB) began its government bond buying programme.

It fell as low as $1.0560, before recovering a little. But many traders expect it may soon be worth the same as a dollar.

The ECB began its latest round of quantitative easing (QE) on Monday.

It will buy bonds worth 1.14tn euros over the next 18 months, flooding the market with euros.

Traders have reacted to the ECB”s latest round of QE by selling euros and buying other currencies such as US dollars.

The US currency is appealing because the Federal Reserve looks to have completed its bond-buying programme, and US interest rates are expected to rise.

The dollar price of the euro has fallen 22.4% since 1st July, when a euro was worth $1.37.