The volume of manufacturing production is calculated separately by the UK Statistics Office, as indicator of the level of raw material consumption, which allows you to predict the mood of producers and consumers.

The formula is a calculation of the actual volume of products of ferrous and non-ferrous metallurgy, energy and mining at current prices. The obtained data are summed up, divided by the final figure of the previous period and reduced to the form of a percentage change (multiplied by 100%).

The UK has a fairly developed energy sector, thanks to which the needs of production are fully met. Traditionally, the level of coal production, offshore oil production and island gas deposits is high. The latter is used for its own needs, and half of the deposits are under conservation.

The production of steel and cast iron is of global importance – high-quality iron ore and the developed infrastructure of transshipment seaports have brought the UK into the top ten exporters of these products.

Frequency, time and format of publication

The Office for National Statistics of the United Kingdom publishes data on the volume of products produced by the manufacturing industry until the 9th of each month. Exit time news — 9: 30 GMT (12:30 Moscow time), format-percentage change to the value for the previous month.

The influence of the Manufacturing Output indicator on the stock and Forex market

The indicator has a strong influence on the national currency exchange rate currencies Great Britain and the countries of the " zone euro", despite the 20% share of the manufacturing industry in GDP. Economic calendars rate the news at three points – this is the highest value on the scale.

The value of Manufacturing Output goes beyond the national framework, due to the analogy of the influence of the level of raw material consumption on production, as well as goods and services in general, since raw materials are the first link on the way to meet consumer demand.

The output of the indicator can cause strong short-term changes in the GBP/USD exchange rate, as well as EUR/USD, and will be reflected in gold if:

  • The data differ from the preliminary value (the growth of the pound when exceeding the predicted volumes, the fall when decreasing)
  • The indicator actually decreased to the previous value, without seasonal economically justified reasons

Stock market investors are watching the weighted average changes in the indicator for the annual period, taking into account the dynamics of the cost of raw materials, trying to predict the stagnation of the economy. High energy prices lead to an increase in the cost of production and the curtailment of a number of production facilities, which will immediately affect the volume of Manufacturing Output consumption. In this regard, the indicator can determine the future state of the economy of both the UK and Europe as a whole.

A consistent drop in volume forces investors to close long positions on stocks and move funds to protective instruments, which leads to a fall in stock indices.