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Pound slides after UK factory output drops in February for first time in almost a year

GBPUSD News by Newsroom on 05:44 April 11, 2018 EST

British manufacturing output fell unexpectedly in February, its first drop in almost a year, according to official figures adding to the mounting evidence that the economy may have slowed in the first quarter.

The data, released on Wednesday with figures for overseas trade, showed in addition another sharp drop in construction output, defying some optimismim after the severe downturn in January.

The pace of economic growth slowed slightly in 2017 as higher inflation caused by the fall in sterling after the Brexit vote hurt consumers, although some exporters have gained from the weaker pound and the stronger euro zone economy.

On the plus side the UK trade deficit narrowed more-than-expected to -0.97bn in February, according to data from the Office of National Statistics (ONS) released on Wednesday.

The Pound came off its 1.1490 highs versus the Euro, falling to 1.1473.