Sterling dips on UK production data

<p>The pound fell this morning following the release of data pointing to a drop in UK production.</p>

UK production fell by 0.6 per cent in April compared with the same month last year, with manufacturing also decreasing by 0.5 per cent, new figures have revealed.

The release of data by the Office for National Statistics (ONS) prompted sterling to drop by 0.1 per cent compared with yesterday (June 10th), trading at $1.5558 earlier this morning, Bloomberg reported.

The ONS's figures show that all sectors were hit production-wise in April apart from electricity, gas and air conditioning. Chemicals, rubber and plastic, and food, drink and tobacco accounted for the drop in manufacturing.

April production did see a 0.1 per cent rise compared with the previous month, although manufacturing was still down by 0.2 per cent on March.

Despite this, Howard Archer of IHS Global Insight told Bloomberg that the data points to a certain level of resilience in UK industry.  

The figures have "added to the recent good news on the UK economy and boosted hopes that the manufacturing sector is cranking up to contribute to growth", he said.

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