10 September, AtoZForex.com, Lagos – UK’s manufacturing production m/m disappointed, coming at its lowest in about two years at -0.8%. This shows a steep drop in the change in the total inflation-adjusted value of output produced by manufacturers.
According to the report from the office of national statistics, total production output is estimated to have increased by 0.8% in July 2015 compared with previous year figures. There were increases in 2 of its 4 main sectors, with the largest contribution coming from mining & quarrying, which increased by 6.7%.
Manufacturing output decreased by 0.5% in July 2015 compared with July 2014. The largest contribution to the decrease came from the manufacture of machinery & equipment, not elsewhere classified which decreased by 15.9%.
Total production output is estimated to have decreased by 0.4% in July 2015 compared with June 2015. Manufacturing fell by 0.8% and was the only main sector to have decreased. Depicting the largest fall since May 2014.
The main manufacturing components contributing to the decrease between June 2015 and July 2015 were the manufacture of basic metals & metal products; the manufacturer of transport equipment; and other manufacturing & repair. In response, the GBP fell sharply against the USD after the release.
Canada’s building permits fell by 0.6%. The official report states that building permits issued by Canadian municipalities edged down 0.6% to $7.7 billion in July, following a 15.5% increase in June. Lower construction intentions in the non-residential sector, mainly in Ontario and Alberta, accounted for much of the decrease at the national level.
The value of permits for non-residential buildings fell 13.9% to $2.7 billion in July, following a 13.8% advance in June. As expected, the Bank of Canada maintained the overnight rate remained at 0.5%.
RBNZ cuts rate
As widely anticipated, the Reserve Bank of New Zealand cut rates to 2.75% from 3.00%. According to the central bank, domestically, the economy is adjusting to the sharp decline in export prices, and the consequent fall in the exchange rate.
Activity has also slowed due to the plateauing of construction activity in Canterbury, and a weakening in business and consumer confidence. The economy is now growing at an annual rate of around 2 percent. The NZD fell sharply after the report.
Australia employment change
Australia’s employment change beat expectation to come at 17.4k as Employment increased to 11,765,400. Unemployment rate also remained steady at 6.2%. This served boost the AUD as the NZD weakened, hence, making the AUDNZD the star performer jumping about 240 pips overnight.
On the calendar for the day
It is another big day for the UK.
-11:00 A.M GMT: MPC Official Bank Rate Votes, Official Bank Rate, MPC Rate Statement.
-12:30 P.M GMT: Unemployment Claims
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