-Rob Dobson, senior economist at survey compiler Markit
The Confederation of British Industry expected the UK economy to grow strongly in the next three months, though at a slightly slower pace compared with the same period last year. The CBI's growth indicator dropped slightly to +19 in February from +23 in the preceding month, still reflecting optimism among British companies about economic prospects in the UK.
Meanwhile, UK house prices dropped in February for the first time in five months, lowering the annual rate of increase to the lowest level since September 2013, Nationwide said. British house prices declined 0.1% in the reported month, following the 0.3% rise in January. In the three months through February, house prices climbed 0.8%, the weakest advance since the three months to May 2013. Annual house price growth slowed to 5.7%, the lowest since September 2013. Britain's housing market has been cooling since the middle of 2014, when authorities tightened mortgage lending rules. The average price of a UK home has declined back to 187,964 pounds, from the recent high of 189,306 pounds reached in August. In the manufacturing sector, meanwhile, activity rose to the highest level in seven months in February. The UK manufacturing PMI increased more than expected to 54.1 in the reported month up from 53.1 in January. This is good news for the UK Finance Minister George Osborne, who seeks voters support in the May election.
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