(October 6 – 12:15 ET) – Today’s
U.K. manufacturing numbers indicate
continued recovery, says CIBC
World Markets economist Audrey
Childe-Freeman. But she says the
strong Sterling must be a concern
for the Bank of England. It is set
to make a decision on interest
rates tomorrow – as will the
European Central Bank.
U.K. manufacturing output rose
by 0.4% in August, above economist
expectations of a 0.3% rise.
Childe-Freeman says that improving
domestic demand should keep the
industrial recovery on track,
although the strong sterling,
set against the euro, could limit
export growth to France and
Germany. This will be a key
factor in the U.K. central bank’s
interest rate decision, she says.
Most economists don’t expect a
change from the B of E or the ECB,
although a move to the now-
notorious “tightening” bias is
expected by some.
-IE Staff
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