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UK manufacturing sector on course for further expansion in the coming months, says Lloyds Bank

UK's manufacturing output rose by 1.2 percent in the last quarter of 2016. Boost to competitiveness from sterling’s depreciation last year was probably a key driver of this upturn. The underlying trend is clearly upward, as is indicated by the 1.9 percent rise in Q4 production when compared to the same quarter a year ago, says Lloyds Bank.

Official data for the month of January showed a small fall in output in January and the February purchasing managers’ survey showed a modest decline in the level of the headline index from the previous month. Analysts at Lloyds Bank opine that the declines are probably just temporary retreats after outsized gains in previous months.

"With orders as measured by both the PMI and CBI surveys strong enough to point to further output gains over the next few months, the sector still seems on course for further expansion," said Lloyds Bank in a report.

Fall in manufacturing investment, however, raises concerns about the sustenance of upside in the longer term. UK manufacturing investment probably fell by more than 4 percent last year, its weakest performance since 2009.  The start of the Brexit negotiations will likely create more uncertainty which could hamper investments going forward. Continued sluggish investment growth may add to concerns about the UK’s modest productivity performance, adds Lloyds Bank.

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2017-05-26 10:27:21
0m

May 26 08:00 UTC Released

ITConsumer Confidence

Actual

105.4 %

Forecast

107.3 %

Previous

107.5 %

May 26 08:00 UTC Released

ITMfg Business Confidence

Actual

106.9 %

Forecast

108.0 %

Previous

107.9 %

May 26 11:30 UTC 2929m

INBank Loan Growth*

Actual

Forecast

Previous

4.30 %

May 26 11:30 UTC 2929m

INDeposit Growth*

Actual

Forecast

Previous

10.30 %

May 26 11:30 UTC 2929m

INFX Reserves, USD*

Actual

Forecast

Previous

375.270 bln $

May 26 12:30 UTC 8989m

USCorporate Profits Prelim

Actual

Forecast

2.3 %

Previous

2.3 %

May 26 12:30 UTC 8989m

USDurable Goods

Actual

Forecast

-1.2 %

Previous

1.7 %

May 26 12:30 UTC 8989m

USDurables Ex-Transport*

Actual

Forecast

0.5 %

Previous

0.8 %

May 26 12:30 UTC 8989m

USDurables Ex-Defense MM*

Actual

Forecast

0.0 %

Previous

1.0 %

May 26 12:30 UTC 8989m

USNondefe Cap Ex-Air*

Actual

Forecast

0.5 %

Previous

0.5 %

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