UK DATA: Jan manufacturing output +1% m/m; +6.8% y/y; median +0.8;+6.4
–Jan industrial production +0.5% m/m; +4.4% y/y; median +0.4; +4.2
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Manufacturing output rose 1% m/m in Jan, above the median forecast
of 0.8%, and the largest m/m rise since Mar 10. Some of the strength was
due to a bounceback from the weather hit Dec fall of 0.1% m/m. Growth,
though, is undoubtedly strong and in line with survey evidence. On the
year growth of 6.8% is the highest since Nov 1994 and the 3m/3m growth
rate is the strongest since Jun 10. Industrial production was up 0.5%
m/m, held down by a large 6.2% fall in utilities output, almost wiping
out the weather related 6.4% spike in Dec. Overall these figures
continue to show the manufacturing sector performing strongly and
looking likely to make another positive addition to GDP in Q1. Figures
won’t change analysts’ views of no change in interest rates today but
will help to cement expectations for a May hike.