UK data preview: Industrial production might surprise to the upside – TDS

FXStreet (Barcelona) - The TD Securities Team highlight the key UK data in the upcoming week, anticipating Industrial Production to show an upside tick with a 0.5% mom gain.

Key Quotes

“Manufacturing PMI (Fri 2 Jan): We’re in line with consensus in looking for the PMI to continue to recover a bit in December, eking 0.2pts higher to 53.7. The PMI will likely continue to bounce around current levels, which are roughly consistent with the more modest pace of manufacturing growth that we expect into 2015.”

“Services PMI (Tues 6 Jan): While markets are looking for the services PMI to remain essentially unchanged at 58.5 in December, we think that the risks lie to the downside and expect to see a fall toward 58.0 instead. The rebound in the Nov data looked a little bit too strong to be sustainable, but we still look for the services PMI to remain at elevated levels in the high-50s for the next few months at least.”

“Industrial Production (Fri 9 Jan): We look for manufacturing production to surprise slightly to the upside with a +0.5% M/M gain (mkt +0.3%) in November, as production rebounds from the -0.7% decline the month before. “