FOREX TradingCharts.com

Financial News: UK Growth Likely To Re-accelerate In Q2 On

UK Growth Likely To Re-accelerate In Q2 On Strong Manufacturing

07/06/2017 - 06:45:00 (RTTNews)

(RTTNews) - Results of the latest manufacturing purchasing managers' survey suggests that British economic growth is set to re-accelerate in the second quarter, on the back of robust manufacturing performance, Capital Economics economist Scott Bowman said.

The IHS Markit/CIPS Purchasing Managers' Index for the factory sector dropped to 54.3 in June from 56.3 in May, survey data showed on July 3.

Despite the latest drop, the average for the second quarter as whole was 55.9, which was above the first quarter's 54.9. Moreover, it was the highest quarterly average in three years.

Bowman noted that the three-month average of the survey's output balance is consistent, on the basis of past form, with a quarterly gain in manufacturing output of around 1 percent, following growth of just 0.3 percent in the March quarter.

The economist also observed that the sterling's ongoing slide seems to be providing some support for manufacturers as the new export orders average for the second quarter remained well above its historical average, and also the level in the year before the EU referendum.

Cost pressures as as a result of the depreciation remain elevated, Bowman pointed out. Yet, the recent marked falls in the input and output price balances suggest that the peak of sterling's pass-through to manufacturing costs and prices has now passed, he said.

"This supports our view that the recent upside surprises in CPI inflation may be indicative of a faster (rather than a bigger) pass-through of the effects of sterling's fall to consumer prices," Bowan added.

Neanwhile, declines in production optimism, new order balance and the employment index raise questions about the sustainability of the faster rate of manufacturing growth in the second quarter, the economist cautioned.

"Overall, after the sharp slowdown in GDP growth in Q1,...survey suggests that the manufacturing sector will help growth to re-accelerate in Q2," Bowman predicted.

"We still think that manufacturing can help to offset the slowdown in consumer services growth resulting from rising inflation."

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


MEXICO: IMF Increases GDP Growth Estimate To 1.9% In 2017 (10 min(s), 59 sec(s) ago)
(RTTNews) - The International Monetary Fund (IMF) raised Mexico's economic growth outlook for ...Full Story»

BRAZIL: Center-south Sugar Cane Crush Is Down 6.13% On Year (34 min(s), 59 sec(s) ago)
(RTTNews) - Brazil's center-south sugar cane crush for the 2017-18 harvest was down 6.13% on y ...Full Story»

BRAZIL: Central Bank Starts Monetary Policy Meeting (57 min(s), 59 sec(s) ago)
(RTTNews) - The Brazilian central bank's monetary policy committee (Copom) meeting started Tue ...Full Story»

U.S. Consumer Confidence Unexpectedly Improves In July (05 hr(s), 31 min(s), 59 sec(s) ago)
(RTTNews) - Consumer confidence in the U.S. unexpectedly improved in the month of July, according ...Full Story»

PMI Fall Unlikely To Deter ECB From Tapering Asset Buys This Year (06 hr(s), 09 min(s), 59 sec(s) ago)
(RTTNews) - The latest slowing in the private sector growth in the euro area and the fall in the p ...Full Story»

German Business Sentiment Hits Record High (08 hr(s), 18 min(s), 59 sec(s) ago)
(RTTNews) - German business confidence strengthened further to a fresh record high in July as comp ...Full Story»

EU Says Confidence Returning As Greece Sells Bonds First Time Since 2014 (09 hr(s), 07 min(s), 59 sec(s) ago)
(RTTNews) - Greece has made much progress since 2010 and investor confidence is returning to the c ...Full Story»

Brazil Consumer Confidence Falls For Second Month: FGV (09 hr(s), 10 min(s), 59 sec(s) ago)
(RTTNews) - Brazil's consumer confidence weakened for the second straight month in July, figur ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

MEXICO: IMF Increases GDP Growth Estimate To 1.9% In 2017

07/25/2017 - 16:30 PM (RTTNews)
(RTTNews) - The International Monetary Fund (IMF) raised Mexico's economic growth outlook for ...Full Story>>

BRAZIL: Center-south Sugar Cane Crush Is Down 6.13% On Year

07/25/2017 - 16:06 PM (RTTNews)
(RTTNews) - Brazil's center-south sugar cane crush for the 2017-18 harvest was down 6.13% on y ...Full Story>>

BRAZIL: Central Bank Starts Monetary Policy Meeting

07/25/2017 - 15:43 PM (RTTNews)
(RTTNews) - The Brazilian central bank's monetary policy committee (Copom) meeting started Tue ...Full Story>>

U.S. Consumer Confidence Unexpectedly Improves In July

07/25/2017 - 11:09 AM (RTTNews)
(RTTNews) - Consumer confidence in the U.S. unexpectedly improved in the month of July, according ...Full Story>>

PMI Fall Unlikely To Deter ECB From Tapering Asset Buys This Year

07/25/2017 - 10:31 AM (RTTNews)
(RTTNews) - The latest slowing in the private sector growth in the euro area and the fall in the p ...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.