Arab Today, arab today uk factory growth lessens chance of fresh boe stimulus
Last Updated : GMT 22:03:31
Arab Today, arab today
Arab Today, arab today

UK factory growth lessens chance of fresh BoE stimulus

Arab Today, arab today

Arab Today, arab today UK factory growth lessens chance of fresh BoE stimulus

London - Arabstoday

British manufacturing activity expanded at its fastest pace in 10 months in March, driven by a pick-up in new orders and increasing the chance that Britain’s economy grew in the first three months of 2012 and avoided a recession. Together with signs that a surge in firms’ costs could fuel inflationary pressures, the improvement in the sector is adding to views that the Bank of England may shy away from another cash injection to boost the fledgling recovery. In another hint that the economy is back on track for growth, financial service firms reported stronger business and plans to hire new staff, a survey from the Confederation of British Industry showed. The Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) rose to 52.1 in March from an upwardly revised 51.5 in February, confounding analysts’ forecasts for a drop to 50.7 and hitting the highest level since May 2011. The index has been above the 50 level that separates expansion from contraction since December. The survey indicated manufacturing output growth of 0.3 per cent in the first quarter of 2012, up from a 0.7 per cent decline in the last three months of 2011 which had contributed to an overall contraction of the economy, Markit economist Rob Dobson said. “This is obviously nowhere near a strong pace, but it is at least sufficient to prevent the sector from remaining a drag on broader GDP growth,” Dobson said. “Inflows of domestic and export orders also showed some improvement in March, but exporters are having to tap markets further afield as conditions in the euro zone remain lethargic,” he added. Damaging spillover onto the British economy from the euro zone debt crisis has been contained by a trillion euro cash injection into financial firms by the bloc’s central bank. Signs of economic resilience in the United States and Asia have also given hope to British firms. Economists at Lloyds Bank said their own business survey showed an “unmistakably positive” tone among companies. And a survey from accountants Deloitte showed that chief financial officers of major companies were much more optimistic than three months ago, though many firms had scaled back plans for investment compared to intentions given last year. A sharp drop in business investment was the main drag on the economy at the end of 2011, when the escalation of the euro zone crisis lead many firms to put investment plans on ice. Overall the surveys will reinforce expectations that the Bank of England will hold off injecting more stimulus into the economy once its 325 billion pound quantitative easing programme is complete in May, especially if an equivalent survey of the services sector, due on Wednesday, also shows a pick-up. All 63 economists in a Reuters poll expect the BoE to leave rates at a record low 0.5 per cent at its monthly policy meeting this week and keep its asset purchase target unchanged. “There are some headwinds to growth in Q2, partly related to the holiday but also to what’s going on in gas production and the run to buy petrol at the end of March,” said BNP Paribas analyst David Tinsley. “But that all aside, there seems to be some underlying momentum in the economy.” Sterling rose to a 13-month high versus a trade-weighted basket of currencies in the wake of the manufacturing data. Data showing that firms raised prices in response to higher raw materials costs are likely to dismay some of the more hawkish MPC members, who are concerned that inflation will not fall as quickly as they had hoped due to a rise in oil prices.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today uk factory growth lessens chance of fresh boe stimulus Arab Today, arab today uk factory growth lessens chance of fresh boe stimulus

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday