The Pound Sterling has strengthened against the majority of its most traded peers after data released on Wednesday showed that industrial production increased by a bigger than expected margin in September, adding to the UK’s improving economy.
According to the Office for National Statistics Industrial output increased by 0.9% in September, rebounding from the 1.1% decline in August and beating economist predictions for a rise of 0.6%. Factory output rebounded by 1.2% recovering the losses seen in August.
Compared to the previous year output had jumped by 2.2%, the strongest annual pace of growth recorded since January 2011. A rebound in the nation’s gas and oil sectors made a big contribution to the improving picture.
The Pound is also benefitting from data which showed that house prices rose yet again in October and as data released yesterday showed that the UK’s service sector grew at its fastest pace in 16 years.
“The UK economic recovery moved up a gear again in October, with the PMIs indicating record growth of output and employment, Manufacturing, services and construction all continued to see very strong rates of expansion, pointing to an ongoing broad-based upturn,” Chris Williamson, chief economist at Markit, said in a statement yesterday.
The European Commission also raised its forecast for the UK saying that the country has made a substantial improvement. It forecasts that the country will see its GDP rise by 1.3% in 2013 and climb by 2.2% next year, more than previously predicted.
The National Institute of Economic and Social Research also raised its forecasts and the Bank of England is likely to raise its predictions when it meets on November 13th. The Bank is not expected to cut its stimulus programme despite the strong performance of the economy this year as its target of 7% unemployment remains some way off.
The Pound could make further gains later in the session if the NIESR GDP estimate is better than forecast.
Current Pound Sterling (GBP) Exchange Rates:
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6114
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1921
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.6899
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9191
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6205
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8388
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5917
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5210
(As of 10:15 am GMT)
Comments are closed.