RE: UK Industrial production numbers today....
"could indicate a profound weakness in production and demand, pointing to a much weaker Q1 GDP outturn than the 0.5% q/q growth we expect. This would be consistent with Governor King's remark that the economy was "bumping along the bottom", and raises the risk of a "double dip" in GDP. "
"Alternatively, however, the January outturn could prove to be erratic. There are two pieces of supporting evidence for this hypothesis. First, the manufacturing PMI hit a 15-year high in January and stayed there in February.[...] Second, both retail sales (according to the BRC) and housing market activity (according to the RICS) were weak in January, largely on account of the poor weather, but rebounded in February." BarCap
I think I would be more inclined to believe number 1. Everyone is saving money, holding back purchases after getting caught up in the xmas shopping frenzy?
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