The British pound against the US dollar renews the lows of the last 11 months. Current quotations are 1.3389.
The pound these days is definitely not an object for envy: statistics are awfully ambiguous, and the USD is pushing too hard to be opposed.
According to the prelim report, the British GDP in Q3 grew by just 1.3% q/q against the forecast 1.5% and growth by 5.5% in Q2. A decline in the British economy must be directly connected to issues with supply chains and the pandemic.
Industrial production in Britain in September dropped by 0.4% m/m, which is an unpleasant yet expected signal. The forecast was 0.2%, and a month before, this index grew by 1.0%. Manufacturing in September dropped by 0.1% m/m against the expected growth by 0.2% m/m. In construction, growth was abrupt, by 1.3% m/m against the forecast growth by 0.2% m/m. This must be a partial compensation for the decline by 0.7% in August.
Production suffers due to some issues with supply as well. This is a problem of all large economies these days, but for Britain, it is even worse after Brexit.
For Q4, there is little optimism: supply issues will be still there and might be even worse in the cold season. For the pound, this is a bad signal.