Latest news with #outputgrowth
Daily Mail
9 hours ago
- Business
- Daily Mail
Four sectors showing green shoots as UK industries remain in the doldrums
Some parts of the UK economy reported higher output in May, but most of the countries' industries continue to suffer from falling orders, according to survey data. Software services, real estate, transportation, and food and drink manufacturing were the four industries to achieve growth last month, according to Lloyds Bank's latest monthly UK Sector Tracker. Only software services and real estate experienced greater output in April, when National Insurance and National Living Wage hikes came into effect across the UK. Five industries also enjoyed lower rates of decline in May, including household products manufacturing, financial services, and industrial goods. However, food and drink manufacturing and software services were the only sectors to benefit from a lift in new orders. Among the industries to experience a large slump in demand were automobile and auto parts manufacturing, as well as metals and mining, healthcare, and chemicals production. Lloyds noted that firms increased their own prices at the slowest pace in five months but attributed this to lower demand, which limited their ability to offset cost pressures. Labour-intensive sectors were the most impacted by input cost inflation, especially tourism and recreation. Since the year started, the UK inflation rate has grown to 3.4 per cent, significantly above the Bank of England's 2 per cent target. Nonetheless, Nikesh Sawjani, senior UK economist at Lloyds, said the bank's survey 'provides tentative hope that the economy saw a rebound in activity in May'. He added: 'While most sectors still face weak demand and rising costs are squeezing margins for businesses, the broader uptick in activity could suggest some early signs of renewed momentum.' Lloyds' announcement comes just a few days after the UK economy was revealed to have suffered its worst contraction for a year and a half in April. UK gross domestic product fell by 0.3 per cent, faster than the 0.1 per cent drop anticipated by economists. Britain's economy has struggled to grow this year amidst elevated energy prices, higher taxes, and tariffs imposed by US President Donald Trump. Since early April, most British-made goods entering the US have been subject to a 10 per cent tariff. Yet as part of a recent trade deal, Trump agreed to lower tariffs on cars, the UK's biggest export to the US, from 25 per cent to 10 per cent, up to a quota of 100,000.
Yahoo
23-05-2025
- Business
- Yahoo
Private-Sector Output Growth Sees Surprise Acceleration Following Tariff Pause
US private-sector output growth unexpectedly accelerated in May as the suspension of reciprocal tari Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
