Insights into UK manufacturing
|↔ PMI Manufacturing
||The manufacturing PMI remained at 58.0 in May, still at its highest level since September 1994. Whilst output, orders and employment balances all fell slightly, each remains in positive territory. Price pressures were evident in the survey: May’s balance for input prices was up 1.7 points to 75.4 and the output price balance was up 2.4 points to 61.1.
|↑ PMI Construction
||The construction PMI rose to 58.5 in May – its highest level since September 2007 – this indicator has now returned positive balances for three months. All three construction sub-sectors – housing, commercial and civil – had positive balances. The construction employment balance improved by 3.9 points to 50.8 the first time this indicator has been above 50 (which indicates a positive balance) since May 2008.
|↑ BoE Lending to Individuals
||Bank of England data shows that total net lending rose by £0.4bn in April. This was composed of a £0.5bn rise in net mortgage lending and a fall in consumer credit of £0.1bn. The annual growth rate for consumer credit has now fallen to -0.1%.
|↑ PMI Services
||The PMI for services rose slightly, by 0.1 points in May, to 55.4. This follows two monthly falls. However, the balance remains above 50 and close to the long run average. With a balance of 58.2 input prices are still rising, though at a slower rate than last month. The employment balance for services dropped below 50 to 49.7 showing some weakness in the labour market.
The week ahead
Tue 8th: BRC/KPMG Retail Monitor
Wed 9th: UK TradeThu 10th:
Fri 11th: Index of Production
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