The recovery in British manufacturing continued in the three months to April, but the pace of growth eased and export orders growth remained sluggish, according to the latest CBI Quarterly Industrial Trends Survey. The figure does not bode well for the first official estimate of UK economic growth for the first three months of the year that will be published this morning. A slowdown from the 0.6 percent growth seen in the final three months of 2014 could dent the Conservatives election chances.
Also yesterday according to a report by the British Chambers of commerce, the majority of British exporters saw their sales grow last year. 59% of businesses sending their goods overseas recorded sales growth in 2014. The BBC director general John Longworth said while he was encouraged by the results, politicians need to do more to support new exporters and close Britain’s trade deficit.
Markets welcomed the news yesterday as the Greek government decided to bulk up its bailout negotiation team and lessen the influence of finance minister Yanis Varoufakis. This follows an apparent breakdown in relations between Varoufakis and some of the Eurozone’s other finance ministers. Markets reacted to this news with Greek 3 year bond yields dropping from 26.31% to 22.32%.
Services PMI data from April indicated a sustained upturn in US service sector output, although the rate of growth eased from the seven-month high recorded in March. The figure came in at 57.8, below a forecast rate of 59.5. The lastest index reading was still well above the 50 threshold indicating growth. On the back of this we did see the USD weaken off in the afternoon.
09:30 - GBP - The preliminary GDP is forecast to show a contraction in the UKs economy
15:00 - US - Consumer confidence is expected to increase
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