UK: Manufacturing sector expected to slow down modestly to 54.8 in April - Rabobank

Analysts at Rabobank suggest that the pace of expansion in the UK manufacturing sector is expected to slow down modestly to 54.8 in April from 55.1 in March. 

Key Quotes

“Last month, the Office of National Statistics pointed out the weaker than expected outcome in the official UK February manufacturing data was not the result of bad weather.  The market is expecting a modest slowdown in UK net consumer credit in March. Having trended higher since 2011, there are signs that credit growth may already have peaked. According to the BoE’s April credit conditions survey, the availability of credit dropped “significantly” in Q1 2018 largely driven by a changing appetite to risk amongst lenders.  On the back of a dismal 0.1% q/q expansion in UK Q1 GDP, market expectations of a May BoE rate hike have fallen back sharply.”

“The fresh set of US data scheduled today includes final Manufacturing PMI (seen unrevised at 56.5 in April), ISM Manufacturing Index (expected to edge lower to 58.4 in April from 59.3 in March) and construction spending (anticipated to rise 0.5% m/m in March from 0.1% in February).”

“In Canada, after a modest contraction of 0.1% m/m in January, GDP growth is expected to recover to 0.3% in February with the y/y growth edging higher to 2.8% from 2.7%.”