Latest news with #NikeshSawjani
Daily Mail
17-06-2025
- 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.
CNBC
10-06-2025
- Business
- CNBC
Sterling weakens as soft labor market data supports UK rate cut bets
The British pound fell against the dollar and the euro on Tuesday as soft UK labor market data bolstered investors' bets for more rate cuts this year from the Bank of England. Pay growth slowed sharply while the unemployment rate rose to its highest level in nearly four years in the three months to April, Britain's Office for National Statistics said. The downturn appeared to gather pace in May as more timely tax office data showed a slump of 109,000 in the number of employees on company payrolls, the biggest decline since May 2020 at the height of the Covid-19 pandemic. "The latest official read on UK labor market activity provided broad confirmation that conditions were easing," said Nikesh Sawjani, senior UK economist at Lloyds. "Should the labor market continue to cool further in the coming months and quarters, consistent with the indication provided by a range of surveys, we believe that should give the Bank of England confidence to deliver further cuts in the Bank Rate over the next year or so." The pound was last down 0.5% against the dollar at $1.3488, having earlier dropped to its lowest since June 2 at $1.3458. The Bank of England meets next week and although it is expected to stand pat on rates, money market traders added to bets for additional rate cuts this year. Short-term rate futures priced in about 48 basis points of cuts by the end of the year, implying about two quarter-point cuts, compared with 39 bps before the data. "This (labor market data) puts a question mark on the hawkish bias that we've seen from the Bank of England," said Kirstine Kundby-Nielsen, FX analyst at Danske Bank. "Markets are very firm that we won't get a cut next week, and I think that's definitely the case, but it can open the door when we get to the August meeting." The pound was down about 0.4% at 84.6 pence per euro, its weakest level against the single currency since May 9.
Zawya
10-06-2025
- Business
- Zawya
Sterling weakens as soft labour market data supports UK rate cut bets
The British pound fell against the dollar and the euro on Tuesday as soft UK labour market data bolstered investors' bets for more rate cuts this year from the Bank of England. Pay growth slowed sharply while the unemployment rate rose to its highest level in nearly four years in the three months to April, Britain's Office for National Statistics said. The downturn appeared to gather pace in May as more timely tax office data showed a slump of 109,000 in the number of employees on company payrolls, the biggest decline since May 2020 at the height of the COVID-19 pandemic. "The latest official read on UK labour market activity provided broad confirmation that conditions were easing," said Nikesh Sawjani, senior UK economist at Lloyds. "Should the labour market continue to cool further in the coming months and quarters, consistent with the indication provided by a range of surveys, we believe that should give the Bank of England confidence to deliver further cuts in the Bank Rate over the next year or so." The pound was last down 0.5% against the dollar at $1.3488, having earlier dropped to its lowest since June 2 at $1.3458. The Bank of England meets next week and although it is expected to stand pat on rates, money market traders added to bets for additional rate cuts this year. Short-term rate futures priced in about 48 basis points of cuts by the end of the year, implying about two quarter-point cuts, compared with 39 bps before the data. "This (labour market data) puts a question mark on the hawkish bias that we've seen from the Bank of England," said Kirstine Kundby-Nielsen, FX analyst at Danske Bank. "Markets are very firm that we won't get a cut next week, and I think that's definitely the case, but it can open the door when we get to the August meeting." The pound was down about 0.4% at 84.6 pence per euro, its weakest level against the single currency since May 9. (Reporting by Samuel Indyk; Editing by Susan Fenton)
Reuters
10-06-2025
- Business
- Reuters
Sterling weakens as soft labour market data supports UK rate cut bets
LONDON, June 10 (Reuters) - The British pound fell against the dollar and the euro on Tuesday as soft UK labour market data bolstered investors' bets for more rate cuts this year from the Bank of England. Pay growth slowed sharply while the unemployment rate rose to its highest level in nearly four years in the three months to April, Britain's Office for National Statistics said. The downturn appeared to gather pace in May as more timely tax office data showed a slump of 109,000 in the number of employees on company payrolls, the biggest decline since May 2020 at the height of the COVID-19 pandemic. "The latest official read on UK labour market activity provided broad confirmation that conditions were easing," said Nikesh Sawjani, senior UK economist at Lloyds. "Should the labour market continue to cool further in the coming months and quarters, consistent with the indication provided by a range of surveys, we believe that should give the Bank of England confidence to deliver further cuts in the Bank Rate over the next year or so." The pound was last down 0.5% against the dollar at $1.3488, having earlier dropped to its lowest since June 2 at $1.3458. The Bank of England meets next week and although it is expected to stand pat on rates, money market traders added to bets for additional rate cuts this year. Short-term rate futures priced in about 48 basis points of cuts by the end of the year, implying about two quarter-point cuts, compared with 39 bps before the data. "This (labour market data) puts a question mark on the hawkish bias that we've seen from the Bank of England," said Kirstine Kundby-Nielsen, FX analyst at Danske Bank. "Markets are very firm that we won't get a cut next week, and I think that's definitely the case, but it can open the door when we get to the August meeting." The pound was down about 0.4% at 84.6 pence per euro, its weakest level against the single currency since May 9.
