Manufacturing output across Europe came in broadly better than expected. In Spain, Germany and in the Eurozone as a collective the sector continued to expand albeit at a slower pace than in January. The Euro strengthened very marginally following the data.
UK manufacturing output also came in better than expected and continued to expand throughout February, with employment in the sector at its highest level in 33 months. As well as this, mortgage approvals and loans rose to 76,947 for the month of January, the highest in 6 years.
The US has started to see a decent run of economic data following the dreadful weather the nation experienced in December and January.
Consumer spending, which makes up two thirds of economic output in the US, rose to 0.4% in January with personal income in the US rising to 0.3%.
As well as this Markit manufacturing PMI and ISM manufacturing PMI both showed big gains in February showing that the manufacturing sector is continuing to expand.
The data adds to the argument that the Federal Reserve will continue to taper its quantitative easing program at US$10bn per month and as a result the US dollar picked up strength from late afternoon through to early evening yesterday.
This morning sterling gains had a set back with UK construction output falling slightly in February from January. The decline in output was mainly due to flooding that hits parts of the UK which hit efforts to build new homes. House building growth fell to a four month low.