Output growth seen in fewer UK sectors
Two of the 14 UK sectors reported output growth in April, according to the latest Lloyds UK Sector Tracker.
Compiled using exclusive PMI survey data from around 1,300 private sector companies, the report shows software services (54.5) and real estate (50.4) saw an increase in output. This was two fewer than March but one more than the start of the year in January.
In addition, software services also saw demand, as measured by new orders, grow (53.3). However, this was one fewer than in March.
A reading on the Tracker above 50.0 indicates expansion, while a reading below 50.0 indicates contraction.
Output growth expectations
Although output growth expectations have eased across nine sectors, five reported an improvement in confidence in future growth, with automotive manufacturers reporting the strongest future output expectations (73.1 vs. 68.2 in March). Of the nine sectors that cited a fall in confidence, software services reported the biggest month-on-month change (63.8 vs. 77.5 in March).
The number of businesses mentioning that uncertainty was weighing on their future growth expectations was just over four times the long-run average.
Nikesh Sawjani, senior UK economist at Lloyds, said: “While this month’s UK Sector Tracker shows the ongoing impact of uncertainties around the global economy, firms continue to adapt to the changing trading environment. Recent events, including the recent interest rate cut together with progress in global trading agreements, could provide a base for further improvements in confidence.”