UK Economics Correspondent, London
Andy's Feed
Nov 6, 2015

UK manufacturing growth surges to 1 1/2-year high

LONDON (Reuters) – British manufacturing grew in September at the fastest monthly pace since April 2014 and the trade deficit narrowed, according to figures that provided some hope a slowdown in the world’s economy might not drag down Britain’s.

The data were released a day after the Bank of England highlighted risks from abroad as it signalled it was not about to raise interest rates anytime soon.

Nov 6, 2015

UK manufacturing growth surges to 1 1/2-year high, trade deficit narrows

LONDON (Reuters) – British manufacturing grew in September at the fastest monthly pace since April 2014 and the trade deficit narrowed, according to figures that provided some hope a slowdown in the world’s economy might not drag down Britain’s.

The data were released a day after the Bank of England highlighted risks from abroad as it signaled it was not about to raise interest rates anytime soon.

Nov 4, 2015
via MacroScope

Are the PMIs a smoking gun for the BoE’s hawks?

Might the latest survey of British services companies be the clincher for Bank of England policymakers who’ve been tempted to vote for higher interest rates?

Probably not. There may be good reasons why Martin Weale or Kristin Forbes would join Ian McCafferty in backing higher interest rates this month, but today’s batch of Markit/CIPS PMIs shouldn’t be one.

Nov 2, 2015
via MacroScope

Nailed-on for a stronger UK services PMI after factory surge?

A surprisingly strong surge in British manufacturing growth last month has left a few economists scratching their heads. Is it a one-off? Could a manufacturing recovery really appear out of seemingly nowhere?

The answers are probably a few months away but they can at least be fairly sure of one thing — Wednesday’s Markit/CIPS services PMI will also show an improvement, if past patterns are anything to go by.

Nov 2, 2015

UK factory PMI surges to 16-month high, exports recover

LONDON, Nov 2 (Reuters) – Growth at British factories surged
unexpectedly to a 16-month high in October, helped by a recovery
in export orders, according to a survey that will temper some of
the concern that the economy is losing steam after two years of
gains.

The Markit/CIPS purchasing managers’ index (PMI), published
on Monday, was a rare bright spot for British manufacturing,
which has lagged the wider economic recovery.

Oct 29, 2015

British mortgage, retail sales data cast shade of doubt over economy

LONDON (Reuters) – British mortgage approvals fell for the first time in four months and retail sales growth softened, casting a shade of uncertainty over hopes that the economy will regain momentum in the final months of the year.

Thursday’s batch of data is unlikely to put Bank of England policymakers under fresh pressure to raise interest rates soon, especially after news this week that the economy slowed more than expected in the third quarter.

Oct 26, 2015

UK factory orders show biggest quarterly fall in three years -CBI

LONDON, Oct 26 (Reuters) – British factory orders suffered
their biggest fall in three years in the three months to October
as a slowdown at home compounded export problems, according to a
survey that suggested manufacturing’s drag on the economy could
worsen.

The Confederation of British Industry’s quarterly industrial
order book balance fell to -8, down sharply from +9 in July and
its lowest level in three years.

Oct 21, 2015

UK public finances improve but Osborne faces challenge to hit targets

LONDON (Reuters) – Chancellor George Osborne still faces a challenge to hit his target for cutting the budget deficit this year, despite a stronger-than-expected improvement in September, according to data released on Wednesday.

A surge in tax receipts helped bring public borrowing down to 9.4 billion pounds in September from 11.0 billion pounds a year earlier and below economists’ forecasts of 10.1 billion pounds.

Oct 20, 2015

Bank of England must not fall behind curve on rates -McCafferty

LONDON, Oct 20 (Reuters) – The Bank of England (BoE) must
not fall behind the curve when it comes to making its first
interest rate hike since before the financial crisis, according
a policymaker, who said Britain’s robust economy has not been
damaged by slowing growth in China.

Ian McCafferty, the only member of the Monetary Policy
Committee (MPC) who votes for higher interest rates, showed no
sign of softening his stance on Tuesday.

Oct 13, 2015

New Bank of England policymaker Vlieghe in no rush on rates

LONDON, Oct 13 (Reuters) – New Bank of England policymaker
Gertjan Vlieghe established himself as one of the rate-setters
least likely to vote for a interest rate hike soon, urging the
bank to wait and see and warning of risks from a global economic
slowdown.

In his first public comments since joining the central bank
as a rate-setter from a hedge fund in September, Vlieghe said on
Tuesday there was a greater chance that inflation in Britain
would come in below target rather than above it.