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1 Apr 2015
Political worries undermine good macro data, GBP soft – Growth Aces
FXStreet (Barcelona) - Previewing the recent UK data releases,the Growth Aces Research Team, comments that UK political scenario has led to GBP depreciation despite strong macro data.
Key Quotes
“Britain’s manufacturing PMI rose to 54.4 in March from 54.0 the month before. It is the highest level since July 2014. The strong domestic market remained the principal source of new contract wins.”
“There was also some better news for exporters in the form of a modest increase in overseas demand following a slight dip in February. Companies reported improved order inflows from a broad range of nations including the USA, China, Germany, the Netherlands, Canada and the Middle East.”
“The index showed manufacturing employment increased for the twenty-third consecutive month in March, with further job creation recorded at both SMEs and large-scale producers.”
“The PMI suggests that output in Britain's manufacturing sector grew by 0.6% qoq in the first quarter 2015, up strongly from 0.2% qoq in the last three months of last year.”
“GfK said its monthly consumer confidence index rose to +4 in March from +1 in February, its highest since June 2002. The survey showed households reported a greater willingness to spend and a more upbeat view of the economy. This has proven buoyant as a big fall in inflation and modest wage rises have boosted households' disposable income.”
“The GBP depreciated strongly today despite very good macroeconomic data. The latest opinion polls before Britain's May 7 election point to a hung parliament, in which no single party can form a government on its own, leaving open the possibility of a whole range of coalition agreements. The political uncertainty undermined good economic news for the GBP.”
Key Quotes
“Britain’s manufacturing PMI rose to 54.4 in March from 54.0 the month before. It is the highest level since July 2014. The strong domestic market remained the principal source of new contract wins.”
“There was also some better news for exporters in the form of a modest increase in overseas demand following a slight dip in February. Companies reported improved order inflows from a broad range of nations including the USA, China, Germany, the Netherlands, Canada and the Middle East.”
“The index showed manufacturing employment increased for the twenty-third consecutive month in March, with further job creation recorded at both SMEs and large-scale producers.”
“The PMI suggests that output in Britain's manufacturing sector grew by 0.6% qoq in the first quarter 2015, up strongly from 0.2% qoq in the last three months of last year.”
“GfK said its monthly consumer confidence index rose to +4 in March from +1 in February, its highest since June 2002. The survey showed households reported a greater willingness to spend and a more upbeat view of the economy. This has proven buoyant as a big fall in inflation and modest wage rises have boosted households' disposable income.”
“The GBP depreciated strongly today despite very good macroeconomic data. The latest opinion polls before Britain's May 7 election point to a hung parliament, in which no single party can form a government on its own, leaving open the possibility of a whole range of coalition agreements. The political uncertainty undermined good economic news for the GBP.”