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U.K. manufacturing production falls 1.2% in August; pound drops

Published 10/09/2013, 04:33 AM
GBP/USD
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Investing.com - Manufacturing production in the U.K. unexpectedly declined in August, dampening optimism over the country’s economic outlook, official data showed on Wednesday.

In a report, the U.K. Office for National Statistics said that manufacturing production fell by a seasonally adjusted 1.2% in August, confounding expectations for a 0.4% increase.

Manufacturing production in July rose by 0.7%.

On an annualized basis, manufacturing production declined at rate of 0.2% in August, disappointing expectations for a 1% gain. Manufacturing production dropped at a rate of 0.3% in the preceding month.  

The report also showed that industrial production fell by a seasonally adjusted 1.1% in August, defying expectations for a 0.4% increase, after inching up 0.1% in July.

Following the release of the data, the pound added to losses against the U.S. dollar, with GBP/USD shedding 0.62% to trade at 1.5984.

Meanwhile, European stock markets remained lower. London’s FTSE 100 dipped 0.3%, the EURO STOXX 50 fell 0.1%, France’s CAC 40 inched down 0.1%, while Germany's DAX slumped 0.1%.

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