visimoney
TLDR:
The number of growing UK sectors hit a 10-month high in February, with rising demand and business optimism. Software services and financial services saw the sharpest output growth, while technology equipment and tourism saw contraction. Supply chain disruption and wage pressures are impacting costs for UK businesses. Output growth in service sectors driven by growing demand, while manufacturing saw new orders fall. Lloyds Bank economists are optimistic about the UK economy’s growth momentum and urge cautious navigation of supply chain disruptions.
Article Summary:
The latest Lloyds Bank UK Sector Tracker revealed that in February, 10 out of the 14 UK sectors monitored reported output growth, the highest number in 10 months. Software services and financial services saw the sharpest growth in output, while technology equipment and tourism sectors reported contraction.
Output growth in the service sectors was driven by growing demand, while manufacturing saw a decline in new orders for the 11th consecutive month. The report highlighted that global supply chain disruption and wage pressures are starting to impact costs for UK businesses, with input price inflation rising to a six-month high.
Lloyds Bank economists are optimistic about the positive momentum in the UK economy, especially after the recent GDP data showing expansion in January. They emphasize the need for careful navigation of supply chain disruptions and strategic investments to maintain financial agility.
In conclusion, the report indicates a broadening growth across various sectors of the UK economy, with challenges such as supply chain disruptions and rising costs needing to be addressed strategically for sustained growth.
