3 May 2016
UK PMI: Manufacturing starts second quarter surprisingly weak - Lloyds
Analysts from Lloyds Bank, the United Kingdom Manufacturing PMI of April, showed that manufacturing output started the second quarter on a surprisingly weak note.
Key Quotes:
“April saw the manufacturing PMI unexpectedly dip to 49.2 (CON: 51.2) after a downwardly revised 50.7 in March. This tumble into contractionary territory runs somewhat counter to other recent domestic sentiment indicators, including the April outturns from the manufacturing component of our own Business Barometer and the CBI Industrial Trends survey.”
“Nonetheless, its conviction is enhanced by the fact that most of its underlying components, including output, incoming orders, work backlogs and, especially, employment also fell back on the month.”
“Admittedly, this weakening challenges our call for a recovery in UK activity in Q2 to 0.5%q/q following Q1’s dip to 0.4% from 0.6% in Q4. However, it is possible that today’s setback, which chimes with weaker-than-expected recent prints from China, France, and the US, is a temporary overhang from the sharp intensification of growth global growth anxieties during the first few weeks of the year.”
Key Quotes:
“April saw the manufacturing PMI unexpectedly dip to 49.2 (CON: 51.2) after a downwardly revised 50.7 in March. This tumble into contractionary territory runs somewhat counter to other recent domestic sentiment indicators, including the April outturns from the manufacturing component of our own Business Barometer and the CBI Industrial Trends survey.”
“Nonetheless, its conviction is enhanced by the fact that most of its underlying components, including output, incoming orders, work backlogs and, especially, employment also fell back on the month.”
“Admittedly, this weakening challenges our call for a recovery in UK activity in Q2 to 0.5%q/q following Q1’s dip to 0.4% from 0.6% in Q4. However, it is possible that today’s setback, which chimes with weaker-than-expected recent prints from China, France, and the US, is a temporary overhang from the sharp intensification of growth global growth anxieties during the first few weeks of the year.”