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10 Apr 2015
UK data disappoints, concerns rise for Q1’s growth – TDS
FXStreet (Barcelona) - Today’s UK data disappointed the markets with IP printing a below consensus figure at 0.1% (consensus at 0.3%) and Construction output falling by -0.9% (consensus at +2.2%), possibly setting up a deceleration in Q1 growth, argues the TD Securities.
Key Quotes
“Today’s Feb data was on the disappointing side, leaving Q1 tracking looking a bit softer. Manufacturing production was in line with consensus at +0.4%, but headline IP was a little weaker at just +0.1% (mkt +03%).”
“Construction output was very weak though at -0.9% M/M (mkt +2.2%), and that's on top of the -2.5% decline in Jan.”
“So while the UK survey data has been looking much better, the hard data is a lot weaker, setting up for a deceleration of growth in Q1.”
“That Q1 GDP figure comes out on 28 April, so just the week before the election, and if it decelerates as substantially as the IP and construction data are suggesting, it could have an impact on voting as it hurts the Conservatives' strong economy story.”
Key Quotes
“Today’s Feb data was on the disappointing side, leaving Q1 tracking looking a bit softer. Manufacturing production was in line with consensus at +0.4%, but headline IP was a little weaker at just +0.1% (mkt +03%).”
“Construction output was very weak though at -0.9% M/M (mkt +2.2%), and that's on top of the -2.5% decline in Jan.”
“So while the UK survey data has been looking much better, the hard data is a lot weaker, setting up for a deceleration of growth in Q1.”
“That Q1 GDP figure comes out on 28 April, so just the week before the election, and if it decelerates as substantially as the IP and construction data are suggesting, it could have an impact on voting as it hurts the Conservatives' strong economy story.”