Weak manufacturing data leads to pound dropping
The pound was down on the back of weak manufacturing data.
A poor performance by the manufacturing sector has led to the pound dropping today (March 12th).
Manufacturing output fell by 1.5 per cent in January compared to the previous month, with the drop coming after a 0.9 per cent rise in output in December.
The pound hit a two-and-a-half-year low of $1.4832 against the dollar in the wake of the news, although there was a slight recovery to $1.4873 later in the day, reports BBC News.
Labour described the manufacturing statistics as "terrible", but the performance was defended by chancellor George Osborne.
He claimed the coalition's steps to boost the manufacturing industry in the UK have led to a rebalancing and rebuilding of the British economy, which contracted in the last quarter of 2012.
Alan Clarke, an economist at Scotiabank, stated a triple-dip recession now seems "inevitable".
Kathleen Brooks, research director at currency trader Forex.com, recently told the Daily Telegraph that one of the challenges facing the pound is the dollar's "new found strength".
Learn about the sterling and forex trading at City Index.
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