12 April 2022 - UK economy slowing significantly

Industrial and manufacturing output in the UK slumped into negative territory as the headwinds facing the economy began to bite. Industrial activity fell by -0.6% from 0.7% in February, while manufacturing fell to -0.4% from 0.9%. Year-on-year, industrial production halved to 1.6% from 3%, while manufacturing fell from 52.3% to 3.6%. While these falls were anticipated and these sectors make up just 20% of total GDP, it is indicative of how the economy is slowing as the headwinds that have been forecast take effect. This sets the start of a trend that will accelerate when increases in the cost of energy and tax payment are factored in. The data intensifies concerns about the cost-of-living squeeze. Overall, GDP rose by just 0.1% in February, versus market expectations of a 0.4% rise. The NIESR estimate for GDP in the three months to March was 1%. This is in line with market expectations and illustrates how the economy is slowing even before the rise in the energy cap and the cost of fuel is factored in. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.