Pound Slides After U.K. Factory Data Add to Slowdown Concern
- Industrial output falls with manufacturing and construction
- Sterling set for weekly losses versus most of its G-10 peers
The pound fell for the first time in three days versus the dollar after data showed U.K. factories and construction companies’ output unexpectedly declined in May, adding to a spate of recent data that pointed to an economic slowdown.
Sterling was on course for weekly declines against all but two of its Group-of-10 peers, as manufacturing, industrial and construction output all dropped and undercut analysts’ forecasts. Data released earlier showed U.K. house prices grew at their slowest pace in four years. Purchasing Managers Index data released this week showed a similar underwhelming trend, raising doubts on the performance on the economy in the second quarter and the ability of the Bank of England to tighten monetary policy amid political and Brexit-related uncertainties.