GBP
British industrial output slowed further at the end of last year, hurt by
maintenance work on North Sea oil and gas fields, adding to signs that
Britain’s economic recovery lost some pace at the end of
 2014. Industrial output fell by a monthly 0.2 percent in December,
compared with economists’ average forecast of a 0.1 percent rise, after no
change in November.

With Britons going to the polls in less than three months’ time, the outlook

GBP
British industrial output slowed further at the end of last year, hurt by
maintenance work on North Sea oil and gas fields, adding to signs that
Britain’s economic recovery lost some pace at the end of
 2014. Industrial output fell by a monthly 0.2 percent in December,
compared with economists’ average forecast of a 0.1 percent rise, after no
change in November.

With Britons going to the polls in less than three months’ time, the outlook
for the economy is under close scrutiny by all political parties. Prime
Minister David Cameron has said he wants Britain to be more export-oriented,
but weakness in the euro zone has left it largely reliant on consumer demand.

Britain’s economy grew by 2.6 percent in 2014, the fastest growth rate of any
big advanced economy, but lost pace towards the end of the year, including in
the manufacturing sector which is exposed to weakening demand in the euro zone.
Since then, however, there have been signs that the fall in world oil prices
has given a fresh boost to growth. Tuesday’s data showed manufacturing
output rose 0.1 percent after robust growth of 0.8 percent on the month in
November. Economists had expected output to fall by 0.1 percent.

USD
U.S. wholesale inventories barely rose in December, the latest suggestion that fourth-quarter
growth could be revised lower. Wholesale inventories edged up 0.1 percent as
lower crude oil prices weighed on the value of petroleum stocks. Stocks at
wholesalers had increased by 0.8 percent in November. 

Inventories are a key component of gross domestic product changes. The
component that goes into the calculation of GDP – wholesale stocks excluding
autos nudged up 0.1 percent.  The report, together with last week’s data
showing a 0.3 percent fall in manufacturing inventories in December, suggested
the boost to GDP growth from restocking in the fourth quarter was probably not
as large as initially thought. 

Sales at wholesalers fell 0.4 percent in December after a similar decline in
November. At December’s sales pace it would take 1.22 months to clear shelves,
down from 1.21 months in November.

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