Pound leaps after surge in manufacturing output
Friday 02 May 2014
The latest stunning evidence of a UK manufacturing revival sent the pound surging to a five-year high yesterday as the City upped its bets on early interest rate rises.
Firms saw much faster growth than expected in April and are adding jobs at the rate of 10,000 a month, according to the Chartered Institute of Purchasing & Supply (Cips), whose latest snapshot of industry activity sent dealers piling into sterling. The currency rose to $1.6921 following the release of the figures, its highest since early August 2009, and gained ground against the euro.
The Cips survey showed industry output rising at its fastest pace for eight months as improved demand from domestic and export markets fuelled the recovery.
It comes days after official estimates showed the UK managing 0.8 per cent growth in the first quarter of 2014. The economy is now 3.1 per cent bigger than a year ago, its best showing in more than six years.
The momentum behind manufacturers heightened speculation that the Bank of England’s Monetary Policy Committee will pull the trigger on rate rises more quickly than the spring of 2015, which it has previously guided as “reasonable” timing for rate hikes.
Futures markets now have a rate rise fully priced in for April next year, a month before the general election, although many economists say an earlier move is increasingly likely with unemployment dropping sharply.
The Bank’s stance on policy contrasts with continuing, albeit slowing, stimulus in the United States and expectations that the European Central Bank could embark on some form of quantitative easing to kick-start a sluggish recovery.
- 1 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...