Manufacturing figures point to slower growth - London Report

MANUFACTURING figures due out today are likely to show a loss of momentum in the UK economy’s growth.

The manufacturing purchasing managers’ survey for October is forecast to sit at 51.5, the same as for September and weaker than the rates of 52.2 in August and 54.7 in July. A reading of 50 shows no change.

Howard Archer, of IHS Global Insight, said: “The clear overall impression is that manufacturing activity has lost appreciable momentum compared to the early months of 2014. This is disappointing for hopes that UK growth can be broad based on a sustained basis going forward and less dependent on services sector.”

Further purchasing managers’ index (PMI) reports are due out during the week, with construction figures tomorrow and services figures on Wednesday.

Office for National Statistics industrial and manufacturing output results are due on Thursday, as well as the Bank of England’s latest interest rate decision. In other economic news, figures due on Friday are likely to show the trade deficit widened in September and in the third quarter overall.

Meanwhile October data from the Halifax, due this week, are likely to add to the evidence that house prices are correcting from a peak earlier this year.

The corporate week starts today with reports from HSBC Holdings, Telecity and Sacoil Holdings.

Tomorrow Advanced Computer Software, Associated British Foods, 888 Holdings, Glencore, Imperial Tobacco, Jardine Lloyd Thompson, Legal & General, One Savings Bank, Persimmon, Unite and Weir are all due to give figures.

On Wednesday Avocet Mining, Drax Group, Esure, First Derivatives, Girst Group, Hilton Food, Hunting, Lancashire Holdings, Marks & Spencer, Meggitt, Old Mutual, Wetherspoon and Wincanton will update the market.

Thursday is a busy day for reporting, with news from AstraZeneca, Beazley, Cable & Wireless Communications, Cobham, Costain Group, Coca-Cola HBC, Croda, Dairy Crest, Experian, Halfords, Hikma Pharmaceuticals, Intu Properties, Wm Morrison, Promethean World, Rentokil, Rightmove, RSA Insurance, Schroders, Shanks Group, Stock Spirits Group, Synthomer and Tate & Lyle. Finally on Friday, Admiral, Ark Therapeutics Group, Bovis Homes, Capital & Counties, Capital & Regional, Spirax-Sarco and Tullett Prebon will report.

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