- Markit
Britain's manufacturing activity increased less than expected in March, underscoring the uneven nature of the economy as the global slowdown undermines exports. According to Markit Economics, manufacturing PMI climbed to 51 last month, up from 50.8 in February. That meant the average for the first quarter of the year equalled the lowest level since 2013, Markit reported. Manufacturers continued to rely on the domestic market for new business in the reported month as factories reported that weaker global economic growth dented new work from key trading partners including the US and Europe. An index of employment also declined for a third straight month, with investment-goods firms seeing the sharpest cuts.
The UK's Office for Budget Responsibility lowered its annual GDP outlook for this year by four percentage points to 2%. Growth for 2017 was also revised down to 2.2% from 2.5%. The OBR also cut the outlook for inflation, expecting the annual rate of CPI at just 0.7% for 2016. Inflation is then seen climbing to 1.6% in 2017, compared to the 1.8% estimated before, and below the official target of 2%. The OBR's forecast is based on the assumption that the UK remains a member of the EU after the June 23 referendum, meaning that a Brexit could depress growth projections even further.
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