Figures just out show that the UK’s industrial output for the April to June quarter grew at the fastest rate for 17 years. Output was up 2.1% over the first quarter of the year.
But, before the ticket tape parade gets under way, the goods news was tempered by the more sobering analysis that most of the growth came in April, and that May and June saw a dramatic slowdown.
Which tends to suggest that the Brexit fallout is coming some way down the road. Evenso, the stock markets are having a stomping time, reaching their highest point for than a year and not far off 7122, the all-time high which came in April last year.
This a bit like driving down the motorway at top speed in the fog. The hazard lights are on, but the car hasn’t slowed down at all and we’re all peering through the windscreen, desperate to see what’s ahead in the gloom.
Today Chief trader at ayondo markets Jordan Hiscott gave his opinion to IFA Magazine: “The FTSE 100 has rallied to a recent high of 6833, its highest point since June 2015 and just 4.1% from its all-time high of 7122, made on 27th of April last year.
“Despite trepidation of a softer UK industrial production figure, this didn’t actually materialise and certainly any immediate sign of negative connotations from Brexit seem to be hyperbole at the moment.
“This aside, if we follow on from the Bank of England’s line of ascertaining fact-based hard data and making policy from that, today’s figure shows UK industrial output rising by 0.1% during June, in addition to output over the last 3 months growing at its fastest since 1999.
“In line with this, sterling is stronger since the figure was released: with GBP/USD now trading at 1.3020, having previously been 1.2970.”