FOREX TradingCharts.com

Financial News: UK Factory Growth Loses Momentum Amid Price Pressures,

UK Factory Growth Loses Momentum Amid Price Pressures, Brexit Worries

02/01/2018 - 08:43:00 (RTTNews)

(RTTNews) - Britain's factory sector growth eased further at the start of 2018 to a seven-month low, thanks to increased price pressures, but sustained its robust momentum even as Brexit worries cloud the economic outlook.

The Purchasing Managers' Index for the manufacturing sector fell to 55.3 from 56.2 in December, survey data from IHS Markit and the Chartered Institute of Procurement & Supply showed Thursday. Economists had predicted a score of 56.5.

A PMI score above 50 suggests growth in the sector. The latest reading was the lowest since June last year. Yet, the figure remained well above its long-run average of 51.7.

The pace of growth in new orders and output slowed further, while price pressures accelerated.

Output growth fell to a six-month low and new order intake was the slowest in seven months. Investment goods sector led the expansion in production and demand.

Foreign demand improved at one of the quickest rates over the past four years, the survey report said.

"The trend in demand will need to strengthen in the near-term to prevent further growth momentum being lost in the coming months," IHS Markit Director Rob Dobson said.

"Price trends will be watched closely to see if the upsurge is simply a one-off spike or something more embedded," Dobson added.

Input price inflation accelerated strongly as increased demand for inputs led to improved supplier pricing power and shortages of raw materials.

Output price inflation was the fastest in 11 months and one of the sharpest in the survey history, IHS Markit said. This was mainly due to an increase in prices of several raw materials and commodities.

January also had the steepest increase in output charges since April of last year as part of the increase in costs was passed on to clients.

Manufacturers remained optimistic and over 55 percent forecast production to be higher in one year's time.

ING Bank economist James Knightley point out that the latest worries on the prospect of a Brexit transitional deal post March 2019 is not helping. "This uncertainty still has the potential to weigh on activity very broadly and deter the BoE from hiking," he added.

The Bank of England is set to announce its latest interest rate decision on February 8.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2018 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Portugal Inflation Slows For Second Month (10 hr(s), 28 min(s), 03 sec(s) ago)
(RTTNews) - Portugal's consumer price inflation eased for the second straight month in January ...Full Story»

Latvia Inflation At 14-Month Low (10 hr(s), 40 min(s), 03 sec(s) ago)
(RTTNews) - Latvia's consumer price inflation eased for the fifth successive month in January ...Full Story»

OECD Unemployment Rate Falls In December (10 hr(s), 41 min(s), 03 sec(s) ago)
(RTTNews) - The unemployment rate in the Organization for Economic Cooperation and Development are ...Full Story»

China's Bank Lending At Record High (11 hr(s), 10 min(s), 03 sec(s) ago)
(RTTNews) - China's banks lent a record amount of new yuan loans in January, data from the Peo ...Full Story»

UK January Household Spending Fall First In 5 Years: Visa Survey (12 hr(s), 45 min(s), 03 sec(s) ago)
(RTTNews) - UK household spending declined at the start of the year, which was the first January d ...Full Story»

Swiss Inflation Slows In January (13 hr(s), 32 min(s), 03 sec(s) ago)
(RTTNews) - Switzerland's consumer price inflation slowed in January, data from the Federal St ...Full Story»

Singapore Visitor Arrivals, Tourism Receipts Hit Record Highs In 2017 (13 hr(s), 43 min(s), 03 sec(s) ago)
(RTTNews) - Singapore's both tourism receipts and visitor arrivals attained record highs for t ...Full Story»

Romania Industrial Production Grows Sharply In December (14 hr(s), 32 min(s), 03 sec(s) ago)
(RTTNews) - Romania's industrial production expanded markedly at the end of the year, mainly d ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Portugal Inflation Slows For Second Month

02/12/2018 - 06:39 AM (RTTNews)
(RTTNews) - Portugal's consumer price inflation eased for the second straight month in January ...Full Story>>

Latvia Inflation At 14-Month Low

02/12/2018 - 06:27 AM (RTTNews)
(RTTNews) - Latvia's consumer price inflation eased for the fifth successive month in January ...Full Story>>

OECD Unemployment Rate Falls In December

02/12/2018 - 06:26 AM (RTTNews)
(RTTNews) - The unemployment rate in the Organization for Economic Cooperation and Development are ...Full Story>>

China's Bank Lending At Record High

02/12/2018 - 05:57 AM (RTTNews)
(RTTNews) - China's banks lent a record amount of new yuan loans in January, data from the Peo ...Full Story>>

UK January Household Spending Fall First In 5 Years: Visa Survey

02/12/2018 - 04:22 AM (RTTNews)
(RTTNews) - UK household spending declined at the start of the year, which was the first January d ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.